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Roundup: Coverage That Saved The Day

Commercial insurance claims are filed everyday, but we tend to hear about them less often than we hear about a friend’s auto insurance claim from their recent accident. Commercial coverage is no different – we’re more likely to hear about a friend’s dental coverage for a filling than we are to hear about a fellow business owner who had the perfect coverage. We’ve rounded up three recent articles of real claims and the coverages that really saved the day for the business.   Business Income Coverage One busy Friday afternoon a furniture store experienced an electrical fire.  The damage to the building and contents was extensive.  Cleanup and restoration took about 6 weeks, during which time the store couldn’t be open to the public. The store averaged sales of about $25,000 per day.  Because the fire was a covered cause of loss under their property policy and they had business income coverage (also known as business interruption insurance), they were compensated for the days of lost income, less their waiting period (usually 72 hours).  This allowed them to cover payroll for their key employees and keep the bills paid while they waited for the store to reopen.   Employment Practices Liability Insurance A lawsuit was recently filed wherein a Pasadena mother is suing a corporation, claiming that her son committed suicide because of treatment he received while an employee of the organization.  While we won’t recount the specific claims here, EPLI coverage will respond to allegations of harassment, mental anguish, wrongful discipline, defamation, libel or slander.  Even if the allegations prove false, the lawsuit will generate legal fees that...
What You Need To Know About EPLI Coverage

What You Need To Know About EPLI Coverage

Imagine for a moment that your business receives a letter from an attorney threatening legal action.  It’s one of the 10 most common HR related legal claims, meaning it falls under one of the many hats you’re wearing.  You’re now tasked with limiting the potential impact this legal claim could have on your business.  Typically these lawsuits end in settlement which means considerable capital expenses. Fortunately there is a way to protect your business through risk management and practical insurance coverage.  Let’s explore some examples of claims that are commonplace in today’s evolving business world and the coverage you can implement. Examples Of Claims That EPLI Could Have Covered A recently terminated 42 year old employee is suing for age discrimination, alleging that only employees under 40 are being retained by your company. An administrative assistant who recently quit alleges that instances of sexual harassment she reported to management went unheeded, creating a hostile work environment. A group of  job applicants alleges race discrimination because they were not hired to work on an upcoming building contract. Lawsuits like these are commonplace, particularly in a tough job market.  They are the sorts of claims that could bankrupt your business if you don’t have the money to offer a sizable settlement or to fight a prolonged legal battle. The Basics of EPLI The specific insurance policy is called Employment Practices Liability Insurance (EPLI).  For seasoned entrepreneurs, the term is well known and the coverage is as standard as General Liability or Workers Comp.  EPLI is a very broad form of coverage that protects your business from legal action and lawsuits due to the following Human...