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Three Times You Will Need EPLI

Three Times You Will Need EPLI

Employment Practices Liability Insurance (EPLI) is one of those lines of coverage that many businesses don’t want to purchase. It may seem like an unnecessary expense and is often overlooked when a company is building an insurance portfolio. There are plenty of instances when EPLI can come in handy.  Here are the three big ones. (1) When You Are Hiring Employees Hiring new or replacement employees is never easy. Once you post the help wanted ad you have to deal with an onslaught of resumes, phone calls, and in-person inquiries. This is time-consuming and frustrating. After you narrow down the list of applicants there are phone and/or in-person interviews, and then the hope that your selected applicant is everything they seem to be and more. From the perspective of a potential employee, things are just as frustrating. They’re sending out multiple resumes and going on multiple interviews. The one with your company goes well, but then they don’t get hired. Why? Some potential employees may believe that they should have been hired and weren’t because of something other than they weren’t right for the job. A job applicant may decide that he or she wasn’t hired due to skin color, gender, sexual orientation, country of origin, pregnancy, disability, or another discriminatory reason. While some of these claims are easy to dismiss, the applicant may choose to hire an attorney and file suit. Fighting a discrimination claim can be time-consuming and costly for your business, even resulting in negative press.  The answer? Employment practices liability insurance.  (2) During The Course of Employment The biggest expense for an employer is, of...

Employment Practices Liability Insurance

Employment Practices Liability Insurance Frequently Asked Questions Employees are typically the single largest expense to a business year after year. Salary, benefits, and training all contribute to the cost per employee. Employees and potential employees can cost your business in other ways. Harassment lawsuits, racial or sexual discrimination and other employment-related causes of action can cost your business money in legal fees and claims payouts. The best way to protect your business is to purchase Employment Practices Liability Insurance (EPLI). Here are some frequently asked questions about this coverage: Isn’t EPLI included in my Commercial General Liability (CGL) insurance policy? This coverage is NOT usually included in your CGL policy. It would need to be added as part of a package policy or purchased as a stand-alone coverage. If you are unsure, check your policy and then talk to your broker. What does EPLI cover? EPLI policies are tailored to fit your business and may include coverage for harassment, discrimination, wrongful termination, breach of contract, failure to employ, failure to promote, violation of civil rights laws and more. See our document titled “SUMMARY OF EPLI (EMPLOYMENT PRACTICES LIABILITY INS.) RISKS” for a more comprehensive list. Does my business need EPLI? Any company that has employees or plans to hire employees needs EPLI coverage. Even if you only employ family members, or you haven’t hired your first employee yet, you should have this coverage in place. Allegations of misconduct or discrimination can come from anyone at any time, even during the interview or hiring process. EPLI claims and lawsuits can be expensive and time-consuming. Even with little or no indemnity...