Protecting your company from various risks is vital. One crucial form of insurance that businesses, even right here in the Twin Ports area, should consider is Employment Practices Liability Insurance (EPLI). At Reliable Agency, Inc., we’re committed to providing you with the knowledge and tools to protect your business effectively. This blog will explain what EPLI insurance is, who needs it, how to obtain it, and special considerations for businesses in the greater Cloquet, Hermantown, Duluth, and Superior region.
What is EPLI Insurance?
Employment Practices Liability Insurance (EPLI) is coverage that protects businesses from claims made by employees reporting allegations of:
- Discrimination: Allegations of unfair treatment based on race, gender, age, disability, or other protected characteristics.
- Wrongful Termination: Claims of improper dismissal or termination practices.
- Harassment: Accusations of sexual harassment or hostile work environments.
- Other Employment Issues: Such as failure to promote, breach of employment contract, or wrongful denial of benefits.
There are numerous additional cases in which EPLI coverage would come into play. The Insurance Information Institute has a full list of additional EPLI coverages.
These claims can be financially burdensome and damaging to your company’s reputation. EPLI helps cover legal costs, settlements, and judgments related to these claims. According to The Hartford, the average cost of cases that aren’t dismissed and go to trial is $250,000. And if the case settles early, it will still costs an average of $75,000. And don’t forget! If the trial is decided in favor of the claimant, they will likely be awarded a substantial financial sum, and you may be required to cover their legal fees, which itself can get very costly.
Who Should Have EPLI Insurance?
EPLI insurance is a valuable investment for any business with employees. And, for us, we are particularly concerned for the welfare of businesses right here in northern Minnesota and Wisconsin. Here are some reasons why our region is so unique:
- Regional Employment Laws: Businesses in Duluth and Superior must comply with employment laws in both Minnesota and Wisconsin. EPLI insurance can help manage risks associated with navigating these regulations.
- Seasonal Employment: Many businesses in the Duluth/Superior area experience seasonal employment fluctuations, increasing the risk of employment-related claims during peak seasons.
- Workplace Diversity: The region’s diverse workforce requires thoughtful management practices. EPLI insurance offers protection against claims of discrimination or harassment.
How to Get EPLI Insurance
At Reliable Agency, Inc., we make obtaining EPLI insurance straightforward. Here’s how to get started:
- Assess Your Risks: Evaluate your business’s exposure to employment-related claims, considering factors such as workplace diversity, seasonal fluctuations, and regional employment laws.
- Determine Coverage Needs: Choose coverage limits and options that fit your specific risks. This might include adding endorsements or special provisions for your particular business situation.
- Consult with us! Speak to one of our commercial agents who understand EPLI insurance. They will help identify all available options and create a policy tailored to your needs.
- Review Regularly: After securing your EPLI policy, regularly review it to ensure it continues to meet your needs as your business evolves. Our clients can access to all their policy info through our Client Portal and Reliable 24/7 mobile app.
Special Considerations for Businesses in the Northland
- Navigating State Regulations: Since many Northland businesses operate in two or more states, it is important to be aware of and follow the different employment laws. Ensure your EPLI policy covers claims in both Minnesota and Wisconsin. And make sure to include Michigan or any other state that you might do business in. Consult with your commercial insurance account manager to address any specific regulatory challenges.
- Managing Seasonal Employees: If your business hires seasonal staff, such as laborers during the summer construction season or plow drivers during winter months, you may face unique employment-related risks. EPLI insurance can help mitigate these risks by providing coverage for claims that might arise from these temporary positions.
- Local Employment Practices: Consider the local employment climate and practices in Duluth and Superior. Regional attitudes towards workplace issues, such as those related to environmental or community concerns, may influence the types of claims you might encounter.
Prevent Employee Lawsuits & Other Considerations
The best way to prevent employee lawsuits is exactly that: PREVENTION. With proper training for all staff in a supervisor/manager role, you will help minimize these types of problems before they ever begin.
- Employee Training: Regular training on employment laws and best practices is essential. Consider offering workshops or seminars to keep your team informed.
- Develop Hiring and Screening Programs. This will give your HR and hiring managers the tools they need to ensure that hiring discrimination is avoided in the first place.
- Documented Policies: Maintain clear and up-to-date HR policies and procedures to help defend against potential claims. Make sure that all supervisors know these policies and procedures and hold them accountable to uphold them at all times.
- Legal Resources: Develop relationships with legal professionals who specialize in employment law to get expert advice and support when needed.
- Document, Document, Document.It cannot be stressed enough how important it is to document everything, especially the steps your business takes to prevent (and react to) workplace disputes.
Reliable Agency is here for you!
Does your business need EPLI coverage? It is a vital component of your risk management strategy and at Reliable Agency, Inc., we are committed to helping you understand EPLI insurance and find the right coverage for your business.
For personalized assistance and to discuss your EPLI insurance needs, reach out to Reliable Agency, Inc! Our team is here to help you navigate the complexities of employment practices liability and secure the coverage that best suits your business. With offices in Cloquet, Hermantown and Superior, we have the experience and agents who want to help you find the right insurance plan for your unique needs. Contact us today to explore your options and ensure your business is well-protected.