While all companies try to do their best to keep their employees long-term, even the best companies may face employment-related lawsuits by disgruntled or dissatisfied employees. Below, the insurance professionals at Unity Insurance discuss the basics of employment practice liability insurance and the reasons you may want to consider adding it to your coverage portfolio.
What is Employment Practice Liability Insurance?
Employment practice liability insurance is a product designed to protect your business in the case of an employment-related lawsuit. This includes costs and damages related to allegations of wrongful termination, discrimination, workplace harassment, and retaliation.
Why Should Your Business Consider Employment Practice Liability Insurance?
Neither size, location, or even workplace morale are strong enough to safeguard against a potential employee claim. Employment-related claims are made against companies with even the strongest of reputations. Without employment practices liability insurance coverage, these claims can be quite costly so it’s important to protect against them even if you do not think your workplace is one that may foster this sort of claim.
Employment practice liability insurance coverage is not meant to protect against a poor company or corporate culture or unestablished workplace policies, but it can safeguard companies that can show they had specific policies and procedures in place prior to the claim.
How To Choose Employment Practice Liability Insurance
Like all professional insurance, employers should seek out coverage limits relative to the financial risk their business may undergo in the case of a lawsuit. For example, a mid-sized healthcare practice or retail store may need more coverage than a mom-and-pop laundry that only employs a handful of people. Similarly, a personal trainer that occasionally contracts a single staff member for seasonal help will not need as much coverage as a big-box gym with dozens of employees.
Third-party is also an option that sometimes has to be requested as an endorsement so consider choosing a company that offers third-party coverage. Third-party coverage under an EPLI policy protects the practice from claims or accusations from a claimant outside of the definition of employees on the policy which includes independent contractors and volunteers. For example, a patient or a vendor would be covered as a third party.
An insurance agent can help talk you through all of your current employment practices and determine risk based on recent employment lawsuits, company size, location, and even the type of business you may have. Reach out to our trusted insurance agents at Unity Insurance to talk through the specifics.
Speak With An Agent At Unity Insurance About Employment Practice Liability Insurance Coverage
At Unity Insurance, we know insurance plays a vital role in every stage of your business and we understand the specific challenges that owners experience. Our professionals provide guidance and support to ensure you make the right decisions regarding employment practice liability insurance coverage, as well as other insurance options. We work with our clients to provide the best plan to suit business needs. Call 410-539-6642 to learn how Unity Insurance’s experienced insurance agents can assist you.