For many business owners, the prospect of a lawsuit by a disgruntled former employee looms like a shadow in the background. If there’s one thing you can use to prevent that, it’s this:
Employment Practices Liability Insurance (EPLI).
Well, of course, there are others but if you’re only going to do one thing– get EPLI coverage. Let’s chat about how EPLI can protect your business in the event of an employee lawsuit.
what is EPLI?
Employment Practices Liability Insurance, or EPLI, is insurance that “provides coverage to employers against claims made by employees.”
Policies typically extend coverage to the following:
- Wrongful Termination
- Sexual Harassment
- Wage-Related Claims
- Claims of Unequal or Unfair Pay
- Discrimination Claims (i.e. age, race, gender, sexual orientation)
- Third-Party Claims
Read on for three tips to avoid employment practice issues.
who needs EPLI?
Although some industries are more prone to these types of claims than others, the most common industries to have EPLI claims filed against them include:
- Professional services
- Restaurant and food services
- Retail, and
how can EPLI protect your business?
EPLI helps protect your business from financial devastation.
Employee claims—whether the employee is currently or had been previously employed—can be very expensive; and even detrimental to small businesses.
EPLI helps cover the financial costs associated with legal action. Attorney fees and settlement costs are reimbursed by the policy, which means your business does not have the unexpected financial burden of paying off employee claim-related legal fees.
turn to benchmark commercial insurance
Don’t know whether you have EPLI coverage or the quality of it? Our team at benchmark commercial insurance can help.
We’ll review your coverage and give you recommendations free of charge. No hard sell, just insights.
For those who want to learn more, including if their business needs EPLI coverage, read our article “employment practices liability insurance — do you need it?”