Designing an EPLI Plan for the Office
Small business owners struggle when faced with employment-related claims. A claim can be brought against other employees and the business itself for such acts as sexual harassment, discrimination, and wrongful termination. Without proper liability insurance, employers face steep fines and legal fees, even if they’ve done nothing wrong. Employment Practices Liability Insurance protects the business from claims filed during the employment process.
What Strategies Should Business Owners Consider?
Since no two businesses are alike, an EPLI plan is designed to specifically meet your company’s needs. EPLI strategies should consider the following circumstances.
- The cost of coverage is based on the size and type of your business, along with its inherent risks. Your insurance company may want to see your personal policies when assessing the risks.
- EPLI policies typically include a deductible. After that has been met, the policy covers legal fees and settlement costs, up to the established limit. It’s important to realize that if an employer loses a case, they must pay the employee’s legal fees in addition to their own.
- The average EPLI policy won’t cover fees associated with criminal behavior, as well as civil fines and other penalties.
- Situations that include property damage and physical injury are not part of EPLI coverage, since they are covered under other insurance policies.
Talk with your insurance agent to develop the best EPLI plan to protect your company.