Do You Need Employment Practices Liability Insurance?
As a business owner, you’re likely familiar with the various risks and liabilities that come with running a company. However, one type of insurance that you may have overlooked is Employment Practices Liability Insurance (EPLI). EPLI provides coverage for businesses against claims made by employees regarding employment practices, such as wrongful termination, discrimination, harassment, or retaliation.
The National Law Review explains that “EPLI provides coverage for claims made by employees alleging various employment-related wrongs such as wrongful termination, discrimination, harassment, and retaliation.” These types of claims can be expensive and time-consuming to defend, and EPLI can help cover the costs of legal fees, settlements, and judgments.
Here are a few reasons why you should consider purchasing EPLI for your business:
1. Employment-related claims are common. Unfortunately, employment-related claims are not uncommon in the business world. Even if you have strict policies in place and follow all employment laws, an employee may still bring a claim against your company. EPLI can help protect your business against these claims and the associated legal costs.
2. It can save you money in the long run. Defending against an employment-related claim can be expensive, even if you win the case. EPLI can help cover the costs of legal fees, settlements, and judgments, potentially saving your business a significant amount of money in the long run.
Forbes stresses the importance of EPLI for small business owners, stating that “even if a small business owner thinks they can handle any claims against their company, the reality is that lawsuits can quickly become expensive and time-consuming.” The article notes that a single employment-related lawsuit could potentially bankrupt a small business, making EPLI a wise investment.
3. It can protect your business’s reputation. If your business is faced with an employment-related claim, it can damage your reputation, making it difficult to attract new customers or clients. EPLI can help mitigate this risk by providing coverage for public relations expenses, which can help repair your business’s image.
Insurance Journal highlights the increasing prevalence of employment-related claims and the importance of EPLI for businesses of all sizes, stating that “even if an employer does everything right, they could still find themselves facing a lawsuit.” EPLI can provide peace of mind and financial protection for businesses facing these types of claims.
Is EPLI insurance right for my business?
It’s required by law in some states. Some states require employers to carry EPLI coverage, so it’s important to check the laws in your state to see if you’re legally required to have it. Even if it’s not required by law, it’s still a good idea to consider purchasing EPLI to protect your business.
If you’re a business owner, Employment Practices Liability Insurance is an important consideration. Even if it’s not required by law in your state, it can protect your business against costly and damaging employment-related claims.
At GSI Insurance Group, your Trusted Choice Independent Insurance Agents®, we are trained professionals who can help you determine if EPLI would be a smart purchase for your business. After assessing your needs, we can recommend a selection of coverages that best suit your company’s unique needs.