Good employees are your most valuable asset. That’s why you take measures to make sure they are safe, respected and properly compensated. But things can still go awry.

Even in the best companies, employees may feel they have been discriminated against, paid unfairly, harassed or simply made uncomfortable at work. Often, these circumstances lead to employee claims against the company, and monetary damages are sought. If you are found liable for restitution, you could be facing an expensive payout. Even if you are exonerated, legal bills can be crushing.

An employment practices liability insurance (EPLI) policy from Evans, Pires & Leonard can help. This insurance is designed to cover legal fees, settlements and damage awards that result from employee claims of misconduct against your company’s employees and managers. Some insurers will even cover the costs of investigations and legal fees associated with regulatory actions. Keep in mind that general liability insurance and directors and officers insurance don’t cover claims of employment practices wrongdoing.

There are measures you can take to minimize the risk of employee complaints—keep written records on hiring, firing and promotions; document compensation and hours worked and make sure the law on those is followed; and disseminate and enforce written policies on workplace ethics and behaviors. That excellent documentation combined with top-quality insurance will be indispensable in the event you are faced with an allegation of employment practices misconduct.