3 Things You Need to Know About Employment Practices Liability Insurance

If you run a business then you should be aware that your human resources policies on hiring and firing employees and the way employees claim to be treated in the workplace can develop into legal minefields, causing potential liability claims that could even bankrupt the business in worst case scenarios. When you take out Employment Practices Liability Insurance you have the knowledge your business is covered against some job-related claims made by employees or former employees.

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Three important aspects of  Employment Practices Liability Insurance (EPLI) that you need to recognize are:

  • it is sometimes included within your standard business owner’s insurance policy or any other liability insurances you may have. The cover given under these policies may not be adequate, however. The questions you need to ask yourself are whether any cover you may have would be adequate if you were faced with liability claims from disgruntled former employees claiming workplace discrimination or wrongful dismissal
  • EPLI usually covers workplace harassment and discrimination, emotional distress suffered by employees, wrongful discharge and possibly privacy-based or reputation-based claims. It does not usually cover OSHA violations or other regulatory violations, such as State Employment Law or Fair Labor Standards Act violations
  • terms of EPLI cover can vary and will need to be negotiated for every state where your business operates.

When you take out EPLI you should be able to access expert legal counsel advice to assist in the unfortunate event of claims against your business. Your best defense against any claims of this nature, however, is to know the employment law in the states in which you operate your business and to ensure you have rigorous business practices in effect.

Contact Schumacher Insurance Agency to find out more about Employment Practices Liability Insurances and to discuss your business insurance needs in greater detail.


About Schumacher Insurance Agency

Why trust us? What do we do different than every other insurance agency? Consider this an invitation to get to know us. We believe we are an exceptional team of protection specialists that work hard to do things the right way, to educate our clients on insurance, and make the experience effortless. We are excited to introduce a new insurance experience for our customers. We encourage you to speak with our team who can show you how different we are… from text messaging services for late payments to educational insurance concepts on Facebook. We will prove our innovative approaches to obtain the proper coverage’s for you, your family, your business. Insurance is likely not the most interesting affair for everyone, but it is most certainly ours! Yes, we are insurance geeks!

Posted on October 9, 2014, in Agency and tagged , , , . Bookmark the permalink. Leave a comment.

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