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Employment Practices Liability Insurance
Employment Practices Liability Insurance covers Claims that would not be covered by Directors & Officers (D&O) coverage or Comprehensive General Liability. EPLI (Employment practices liability Insurance) is a very specialized kind of insurance, designed to protect your company in ways that are essential in today’s litigious society.
Protect your business and yourself with Employment Practices Liability Insurance. This fairly new type of liability insurance will protect your business from claims from any employee, potential employee or former employee. Claims that can be covered include wrongful termination of employment, sexual harassment, discrimination (sex, age, race, disability, etc.) or any other employment allegations. Employment Practices Liability Insurance should be obtained as soon as you begin your hiring process for employees. In many situations where investors are involved in your business, they will require that you have this form of liability insurance as they can also be held accountable.
Business owners need to seriously consider getting Employment Practices Liability Insurance for a number of reasons. Employees filing suit against their employers is higher than ever. Now business owners are finding that they need to be cautious all the way from the pre-hire process to the interview and after. Even if the employee was never hired they are still at risk against allegations from them and will find themselves in a lot of trouble if they are without Employment Practices Liability Insurance. Frightening enough, it is also estimated that three out of five businesses will be sued by an employee.
The main point that needs to be understood is that any and every business is at risk of being sued by an employee. There are several instances that can but businesses at risk such as, choosing not to hire a particular employee, having to fire someone, a “friendly” employee, or even a harmless joke told while on the clock. Past, present and even potential employees are all capable of bringing suit onto any company they work for, have worked for, or interviewed for. In the case that the employees claim is a fraud and there is barely evidence for their claim, the process can still be long and expensive.
Any company that has employees should obtain Employment Practices Liability Insurance to ensure that they will not be held liable in employee allegations. Your current business insurance may be lacking in areas and not fully protect you from instances where an employee sues you.
Make sure to ask your SafeCal agent to ensure you are covered against cases regarding:
- Sexual Harassment
- Loss of Consortium
- Drug Testing
- Wage and Hour Dispute
- Invasion of Privacy
- Negligent Hiring
- Negligent Suspension
- Breach of Contract
- Wrongful Termination
- Mental Anguish