Viking Safeguard XIX: EPLI – Your Shield Against Internal Battles

Greetings, Fellow Viking Leaders,

In the ever-changing seas of business, we often brace ourselves for external challenges—competition, market volatility, and technological disruption. But just as perilous are the internal risks that can quietly undermine even the most successful organizations. Culture, as we’ve seen, can either be a powerful asset or a hidden risk. Leadership accountability is vital to steering the company in the right direction, ensuring that integrity and trust form the backbone of the business.

Yet, even with the strongest leadership and culture in place, internal conflicts can arise—claims of wrongful termination, harassment, and retaliation. This week, we arm ourselves with Employment Practices Liability Insurance (EPLI), a crucial safeguard that defends your organization against these costly disputes.

While leadership accountability builds a healthy culture, EPLI stands as the final shield—protecting your company from the legal and financial consequences of internal challenges. Regardless of how strong your leadership or culture may be, EPLI ensures your organization is prepared to face the inevitable battles that arise within.

Internal Conflicts: The Unseen Threats

Last week, we explored how leaders who fail to be accountable send ripples throughout their organization, creating an environment ripe for mistrust, disengagement, and even legal battles. When leaders allow misaligned behaviors to persist, these internal conflicts can escalate into claims of discrimination, harassment, or retaliation. EPLI acts as your business’s safeguard when such conflicts arise.

Just as a Viking shields themselves in battle, EPLI shields your business from the financial blows of lawsuits, settlements, and legal fees that stem from internal disputes.

How EPLI Protects Against Leadership Failures

In the battlefield of modern business, EPLI guards against the most common and costly internal disputes:

1. Discrimination: Claims related to race, gender, age, or other protected categories can quickly lead to costly legal battles. If leadership fails to foster an inclusive culture or holds biases, EPLI steps in to cover the defense.
2. Harassment: Leadership accountability is key to preventing harassment in the workplace. But when issues arise, EPLI provides a financial shield, covering legal fees and settlements.
3. Wrongful Termination: If an employee feels they were unfairly dismissed, whether due to poor leadership decisions or miscommunication, EPLI ensures that your company is protected.
4. Retaliation: When employees raise concerns or report misconduct and feel they were punished in return, EPLI stands ready to defend the company from these damaging claims.

Why Every Company Needs EPLI – Even with Strong Leadership

Even the best leaders cannot prevent every internal conflict. EPLI ensures that when leadership accountability falls short, the company does not bear the full financial burden of resulting disputes.

Without EPLI, companies face:

• High Legal Costs: Defending claims, even if unfounded, can drain resources and shift focus from core business goals.
• Settlements and Judgments: Should the courts rule against the company, settlements can be substantial. EPLI helps cover these costs.
• Reputation Damage: Internal conflict, especially if it becomes public, can tarnish a company’s reputation. While leadership accountability can prevent many issues, EPLI provides the buffer to weather such storms.

Fortifying the Ship: Leadership Accountability and EPLI Together

EPLI should be seen as a powerful shield, but not a substitute for proactive, accountable leadership. The combination of strong leadership and EPLI protection creates a well-defended organization capable of facing any internal or external battle.

• Implement Clear Policies: Leadership must establish and communicate policies around discrimination, harassment, and accountability to reinforce company values.
• Regular Training: Equip leaders and employees with training on conduct and workplace culture. This helps avoid conflicts that could escalate into legal disputes.
• Address Issues Early: Leaders should act swiftly and transparently when internal concerns arise, preventing them from growing into legal matters.

Final Thoughts

In the Viking tradition, no warrior would enter battle without a shield, and no business leader should face the internal challenges of modern business without EPLI. It stands as the final line of defense when leadership accountability and a strong culture aren’t enough to avoid disputes. By combining accountability in leadership with the protective power of EPLI, businesses can confidently navigate the stormiest of seas.

Until our next conquest, stay vigilant, stay protected, and may your leadership continue to steer your business through calm seas and stormy waters alike.

Best regards,

Marianne Halvorsen, CPCU, AIS