Employment Practice Claims – 3 Items Every Title Firm Should Consider

As the new year begins, many firms take time to assess their internal policies and risk management practices. One risk that is often ignored by title agents and title firms is employment practice liability. This is due to the fact that most title firm asre small, hire independent contractors, are sole practitioners, outsource any necessary human resource functions and the office staff is usually minimal. Firms view employment practices liability insurance (EPLI) as unnecessary. However, there are three dynamics that must be assessed.

  1. Mid to large title agent practices that do employ a number of individuals should consider EPL Insurance. The exposure a firm of this size has needs to be addresses by an insurance agent and the firm.
  2. Small firms who may only have family or close friends as employed staff might not have a great need for EPL insurance. A discussion with a insurance agent familiar with this insurance should occur to assess whether the benefits outweigh the expense, or if this risk is better to be self-insured.
  3. All firms need to be aware that EPL insurance covers some perils and situations that even independent contractors will encounter. A contractor experiencing discrimination may sue the a title firm that did the discriminating. An EPLI policy can be worded to provide coverage for a situation such as this.

As 2013 rolls forward, consider whether employment practices liability insurance is right for your title firm. Contact a broker to discuss additional ways to protect your firm against wrongful employment claims.