EPLI Underwriting Checklist: Handbooks, Training, Documentation, and Manager Practices

When you apply for EPLI coverage, underwriters evaluate your restaurant's employment practices to determine your risk level, premium, and coverage terms. At Anchor Insurance, we help restaurant owners prepare for this process by providing a clear underwriting checklist - so you know exactly what carriers will ask for and how to present your business in the best light.

This guide breaks down the four core areas underwriters focus on: employee handbooks, training programs, documentation practices, and manager conduct. Get these right, and you'll qualify for better coverage at better pricing.

What EPLI Underwriters Evaluate: The Four Pillars

EPLI underwriters are looking for evidence that you actively manage employment risk. They evaluate your practices in four key areas:

1. 1.
   Employee Handbook & Written Policies: Do you have clear, legally compliant policies in writing?
2. 2.
   Training Programs: Do you train managers and employees on harassment, discrimination, and employment law?
3. 3.
   Documentation Practices: Do you document hiring, discipline, performance, and termination decisions?
4. 4.
   Manager Practices & Oversight: Are managers trained, supervised, and held accountable for compliant employment practices?

Let's walk through each pillar with a practical checklist of what carriers look for.

Pillar 1: Employee Handbook & Written Policies

An employee handbook is your first line of defense against employment claims. It sets expectations, defines policies, and provides a record of what employees were told about workplace conduct and procedures.

What Underwriters Want to See

When you apply for EPLI, carriers will often ask for a copy of your employee handbook. They're looking for the following policies:

• At-will employment disclaimer: A clear statement that employment is at-will and can be terminated by either party at any time, for any lawful reason
• Equal employment opportunity (EEO) policy: A commitment to non-discrimination and equal opportunity in hiring, promotion, and termination
• Anti-harassment and anti-discrimination policy: Defines prohibited conduct, including sexual harassment, and explains how to report complaints
• Complaint and investigation procedure: A clear process for employees to report harassment, discrimination, or other concerns - with multiple reporting options (not just the direct manager)
• Anti-retaliation policy: A promise that employees will not be retaliated against for reporting complaints or participating in investigations
• Progressive discipline policy: Outlines the typical steps for addressing performance or conduct issues (verbal warning, written warning, suspension, termination) - but preserves at-will employment
• Meal and rest break policy: Complies with state wage and hour laws (especially important in California, New York, etc.)
• Tip pooling and wage policy: Explains how tips are distributed, who participates in tip pools, and how wages are calculated
• Leave policies: Covers sick leave, family leave, medical leave, and other legally required leave (FMLA, state-specific paid sick leave, etc.)
• Acknowledgment form: A signed acknowledgment from each employee confirming they received, read, and understand the handbook

Common Mistakes to Avoid

• Using a generic handbook template from another state or industry without customizing it to your state's employment laws
• Including language that creates an implied contract (e.g., 'employees will only be terminated for cause')
• Failing to update the handbook when laws change (e.g., new paid sick leave requirements)
• Distributing the handbook without getting signed acknowledgments from employees
• Having a handbook but not actually following it (inconsistent application undermines the handbook and creates liability)

Checklist: Employee Handbook Best Practices

• Handbook is in writing and distributed to all employees (in English and other languages as needed)
• Handbook includes all required policies for your state and industry
• Handbook is reviewed and updated annually (or when laws change)
• All employees sign an acknowledgment form confirming receipt and understanding
• Signed acknowledgments are kept in employee personnel files
• Managers are trained on how to apply handbook policies consistently

Pillar 2: Training Programs

Training is one of the most effective ways to reduce EPLI claims - and it's increasingly required by law in many states. Underwriters want to see evidence that you're proactively educating managers and employees on harassment prevention, discrimination, and employment law compliance.

What Underwriters Want to See

• Anti-harassment training: Regular training (at least annually) for all employees on how to recognize, report, and prevent harassment
• Manager-specific harassment training: Separate, more detailed training for managers and supervisors covering their legal obligations, how to respond to complaints, and how to avoid retaliation
• Anti-discrimination and unconscious bias training: Training on protected classes, lawful vs. unlawful employment decisions, and recognizing bias
• Wage and hour compliance training: Especially important for restaurants - covers tip pooling, overtime, meal breaks, and employee classification
• Documentation of training completion: Sign-in sheets, certificates of completion, or learning management system (LMS) records showing who was trained and when

State-Specific Training Requirements

Many states now require harassment prevention training by law. Make sure you're compliant with your state's requirements:

• California: Requires 2 hours of harassment prevention training for supervisors and 1 hour for non-supervisory employees (every 2 years)
• New York: Requires annual harassment prevention training for all employees
• Connecticut: Requires 2 hours of harassment prevention training for supervisors (every 10 years)
• Delaware, Illinois, Maine: Have similar training requirements or recommendations

Checklist: Training Best Practices

• Harassment prevention training is conducted at least annually (or as required by state law)
• Managers receive separate, more in-depth training on harassment, discrimination, and retaliation
• Training is documented with sign-in sheets, certificates, or LMS records
• New employees receive training during onboarding (within 30-90 days of hire)
• Training is interactive (not just a video) and includes examples relevant to restaurant operations
• Training records are kept for at least 3-5 years (in case of future claims)

Pillar 3: Documentation Practices

In employment litigation, if it's not documented, it didn't happen. Underwriters evaluate whether you have systems in place to document hiring, performance, discipline, and termination decisions.

What Underwriters Want to See

• Written job descriptions: Clear descriptions of essential job functions, physical requirements, and qualifications for each position
• Documented hiring process: Application forms, interview notes, reference checks, background check authorizations, offer letters
• Performance reviews: Regular (at least annual) written performance evaluations documenting strengths, areas for improvement, and goals
• Discipline documentation: Written records of verbal warnings, written warnings, suspensions, and performance improvement plans
• Termination documentation: Termination checklist, final paycheck calculation, return of property, exit interview notes (if applicable)
• Complaint and investigation records: Contemporaneous notes from any harassment or discrimination complaints, including witness statements, findings, and corrective action taken
• Personnel files: Organized files for each employee containing all employment-related documents (hire paperwork, reviews, warnings, etc.)

Common Documentation Mistakes

• Documenting performance issues only after deciding to terminate (looks like pretext)
• Using vague or subjective language ('bad attitude,' 'not a team player') instead of specific, observable behaviors
• Failing to document positive performance (makes it look like the employee was always a problem)
• Inconsistent documentation (disciplining one employee for a rule violation but not documenting the same violation by others)
• Storing employee files in disorganized or unsecured locations (especially sensitive documents like medical records or background checks)

Checklist: Documentation Best Practices

• All hiring decisions are documented (applications, interview notes, offer letters)
• Performance reviews are conducted and documented at least annually
• Disciplinary actions are documented in writing at the time they occur (not retroactively)
• Termination decisions are reviewed by someone other than the direct manager and documented with specific reasons
• Complaints are investigated promptly and documented (even if no violation is found)
• Personnel files are organized, complete, and stored securely (with separate files for medical and I-9 documents)
• Documentation is retained for at least 3-7 years after termination (depending on state and federal requirements)

Pillar 4: Manager Practices & Oversight

Managers are your front line - and your biggest source of liability. Underwriters want to know that your managers are trained, supervised, and held accountable for compliant employment practices.

What Underwriters Want to See

• Manager training on employment law: Specific training for managers on how to hire, discipline, terminate, and respond to complaints lawfully
• Clear delegation of authority: Written policies defining who has authority to hire, fire, discipline, and change schedules
• Oversight and review: Termination decisions, discipline actions, and major schedule changes are reviewed by ownership or senior management
• Access to HR support: Managers have access to HR guidance (in-house HR, third-party HR service, or employment attorney hotline) before making major employment decisions
• Accountability: Managers who violate employment policies or create liability are disciplined or terminated

Common Manager Practice Issues in Restaurants

• Promoting servers or line cooks to manager roles without any HR or employment law training
• Allowing managers to make hiring, scheduling, and termination decisions without oversight or review
• Failing to address manager misconduct (harassment, favoritism, retaliation) because 'they're good at their job'
• Not providing managers with resources or support when they face difficult employment situations
• Using inconsistent standards (one manager is strict about attendance, another is lenient - creates disparate treatment claims)

Checklist: Manager Practice Best Practices

• All managers receive training on harassment prevention, discrimination, retaliation, and lawful termination practices
• Written policies define which employment decisions require owner or senior management approval
• Managers have access to HR support or legal counsel before making high-risk decisions (terminations, discrimination complaints, etc.)
• Ownership or senior management reviews all termination decisions before they're finalized
• Managers are held accountable for employment law violations and face discipline or termination if they create liability
• Managers are trained to escalate complaints immediately rather than trying to resolve them informally

What to Expect During the EPLI Application Process

When you apply for EPLI through Anchor Insurance, here's what the underwriting process looks like:

1. 1.
   Complete the application: We'll ask for basic information about your business (headcount, payroll, turnover rate, prior claims) and your employment practices (handbooks, training, documentation)
2. 2.
   Provide supporting documentation: Carriers may request copies of your employee handbook, training records, sample policies, or prior policy terms
3. 3.
   Carrier review: Underwriters review your application and may ask follow-up questions about your practices or prior claims
4. 4.
   Quote and terms: Carriers provide a quote with proposed limits, deductibles, and any exclusions or special conditions
5. 5.
   Bind coverage: Once you accept a quote, we bind coverage and issue your policy

Tips for a Smooth Underwriting Process

• Disclose all prior claims or pending lawsuits honestly - carriers will find out, and hiding claims can void your policy
• Gather your employee handbook, training records, and policy documents before applying
• If you don't have certain policies or practices in place, be honest - we can help you implement them or find carriers that are more flexible
• Be prepared to explain any gaps or weaknesses in your practices and what you're doing to improve

How Anchor Insurance Helps You Prepare for EPLI Underwriting

At Anchor, we don't just submit your application and hope for the best. We help you prepare so you present your business in the best possible light:

• We review your practices before applying: We identify gaps in your handbooks, training, or documentation and help you fix them
• We connect you with resources: We can recommend HR service providers, employment attorneys, and training platforms to help you build strong practices
• We shop carriers strategically: We know which carriers are more flexible on certain issues (e.g., no handbook, limited training, prior claims) and target our submissions accordingly
• We explain underwriting questions: We translate carrier jargon and help you answer questions accurately without over-disclosing or under-disclosing

Frequently Asked Questions

Do I need an employee handbook to get EPLI coverage?

Not always, but it helps significantly. Some carriers require an employee handbook as a condition of coverage. Others will quote without one but may charge a higher premium or exclude certain coverages. At Anchor, we can help you find carriers that will work with you even if you don't have a handbook yet - and we'll connect you with resources to create one.

What if I've never done harassment prevention training?

That's okay - but you should start now. Many carriers offer online training modules as a value-added service with your EPLI policy. Even if not required by law in your state, implementing annual harassment prevention training will reduce your risk, improve your underwriting profile, and may qualify you for premium discounts at renewal.

How long should I keep employment records?

Federal law requires you to keep personnel and employment records for at least 1 year after termination (3 years for certain records like I-9 forms and payroll). However, for litigation purposes, we recommend keeping all employment-related documents (hiring, performance reviews, discipline, termination) for at least 3-5 years after termination. Some states have longer retention requirements.