Small business owners tend to have a lot on their plate. For many, this entails handling all day-to-day aspects of their business. This includes but is not limited to hiring and onboarding, payroll, scheduling, and daily operations. Though often considered a “need” more than a “want”, Commercial Insurance is a safeguard against what could go wrong. Employment Practices Liability Insurance, or EPLI, is a specific type of liability insurance every business should strongly consider.
EPLI covers a business against claims that may arise from a wide-ranging list. Wrongful termination, sexual harassment, discrimination, and breach of contract are just a few of the different kinds of employee lawsuits that may be covered with an Employment Practices policy. These policies protect the insured against the costs associated with legal defense as well as the related judgements and settlements arising from an Employment Practices claim.
Many small business owners underestimate their exposure to Employment Practices Liability claims. Unfortunately, in our litigious society, these claims can happen at any time and be brought by just about any person who may have even a peripheral connection to their business. A potential employee who believes they weren’t hired for reasons protected by law could bring a suit. A current employee who feels they were passed over for a promotion could allege wrongdoing. A claim could even arise from a person with no direct connection to the business who accuses an employee of misconduct during an on the clock interaction.
Any business looking for a well-rounded risk management program should carefully consider an EPLI policy. Additionally, employers should invest in employee training on the topics of harassment and discrimination to minimize their claims exposure. Reliable Agency has the resources available to help with your HR and employment practices needs.
Don’t hesitate to contact any of our Commercial Lines agents to discuss any insurance concerns you may have.