Employment Practice Liability Insurance protects your business from employment-related issues including, but not limited to, alleged discrimination, sexual harassment, retaliation, wrongful termination and harassment. These risks are more likely to happen at new and small businesses. Below, the insurance professionals at Unity Insurance discuss why it’s important to obtain Employment Practice Liability Insurance for your small business.
Small Businesses Have A Greater Risk
Some small businesses may have less secure financial circumstances than large corporations, and employee-related issues could potentially impact the entire business. Employment Practice Liability Insurance will offer protection for your business during employee-related issues and lawsuits.
Types of Possible Claims
There are two types of potential claims that can be filed where you would need Employment Practice Liability Insurance.
- External claims can be filed by a client, customer or third party who has a discrimination or harassment complaint.
- Internal claims can be filed by an employee for an issue that took place at work.
Factors That Determine Your Cost of Employment Practice Liability Insurance
There are multiple factors that affect the price of Employment Practice Liability Insurance for your business. The number of employees, employee turnover rate, claim history, and employee rules and practices structure are just a few factors that are taken into account when determining the right insurance package for your business. Employment Practice Liability Insurance is available as a stand-alone policy, or you can purchase it as an endorsement to a Business Owners Policy.
Typically, Employment Practice Liability Insurance provides protection to everyone in your business, from an associate to a senior executive. If a lawsuit is filed and goes to trial, Employment Practice Liability Insurance covers out-of-court settlements as well as defense expenses.
Tips to Lower Your Business’ Risk
To reduce your company’s chance of being sued for employment practices liability, it is wise to have employee practices and protocols in place. You should also provide job descriptions for each employee position, have timely evaluations and complete background checks prior to hiring and keep records. Taking these simple steps can prevent your business from potential lawsuits.
Our Brokers at Unity Insurance Can Provide Your Small Business With Protection
Our brokers will work with you to help you assess and manage your risk proactively. Protecting your small business is essential and we’re here to guide you through the process of picking the right coverage for your business. To learn more about Employment Practice Liability Insurance, contact Unity Insurance today.