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Why Your Club Should Consider Employment Practices Liability Insurance

Posted On: December 1, 2018

Why Your Club Should Consider Employment Practices Liability Insurance

Your employees are your biggest asset, so ensuring a safe work environment is always a priority. By taking an active role in keeping the workplace free of harassment and discrimination, you’re not only protecting your employees while they’re on the job, but yourself and your club from lawsuits, right?

Unfortunately, it’s not that simple. From the moment you start the pre-hiring process to the final exit interview – and even long after an employee leaves – you are vulnerable to employment-related lawsuits. According to researchers, three out of five employers will be sued by a prospective, current, or former employee while they are in business. While the suits may be groundless, defending against them is costly and time-consuming. The damage of a claim doesn’t end there, as it can severely impact your club’s reputation for years to come.

The risk of a lawsuit is always present. And, with claims for wrongful employment practices on the rise, businesses are relying on Employment Practices Liability insurance (EPLI) as a safeguard. EPLI can protect your club from claims or lawsuits filed by employees, former employees, and candidates regarding their employment relationship with an employer—protecting your business from expensive litigation.

What is EPLI?

Employment Practices Liability policies provide protection from wrongful employment practices such as breach of contract, wrongful termination, or discrimination. As a business that hires, fires, and provides compensation, lawsuits are always a very real threat, regardless of how well you feel you are prepared for them. A lawsuit could result from someone’s unknown personal bias. It could also stem from a baseless accusation of a disgruntled employee looking for a quick payout. For both options – and everything in between – EPLI has you covered.

EPLI is an effective solution for protection from the following wrongful employment practices:

  • Harassment
  • Discrimination
  • Actual or alleged wrongful dismissal, discharge, or termination
  • Employment-related misrepresentation
  • Employment-related libel, slander, humiliation, defamation, or invasion of privacy
  • Wrongful failure to employ or promote
  • Wrongful deprivation of a career opportunity, wrongful demotion, or negligent evaluation
  • Wrongful discipline
  • Vicarious liability for intentional acts
  • Punitive damages
  • Coercion or humiliation in relation to race, marital status, gender, age, physical and/or mental impairments, pregnancy, sexual orientation, and any other protected class established by federal, state, and local statutes

Additional Benefits to EPLI

There are several reasons to choose EPLI. Many policies also offer the following inclusions and add-ons:

  • Consultation, HR assistance, and other risk management consultative services
  • Coverage for defense costs outside the policy limits
  • Third-party liability coverage
  • Wage and hour coverage for claims alleging wage and hour violations
  • Volunteer workers can be added as additional insureds
  • Extended reporting periods may be added

A particular service that can greatly reduce the likelihood of your business being sued is the implementation a risk management strategy. This service gives policyholders access to training and human resource consulting. By adopting basic risk controls, your club is better equipped to handle an accusation and can significantly lower the threat of a claim. Taking proper steps to provide training and creating a plan can save you hundreds of thousands of dollars should a case arise. As the saying goes, “An ounce of prevention is worth a pound of cure.”

David A. Harnois, CCM, CPL, is a proud employee owner of Affinity Club Underwriters, specializing in commercial and group program business. David provides insurance solutions for hundreds of clubs and may be reached at (319) 800-6676 or at


Affinity Club Underwriters, a division of VGM Insurance Services, is a wholesale program insurance provider specializing in the club, golf and hospitality sector. The exclusive provider of the Affinity Club Program for private and semi-private clubs. An industry-leading insurance program administrator led by club industry experts, and the endorsed program of VGM Club.



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