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CYA Regarding Business Insurance!

By Link LeGrand

Real Estate Broker/Owner with LeGrand Brokerage

May 24, 2011 02:26 AM

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The Importance in Employment Practice Liability Insurance- EPLI.

The business environment has become increasing unpredictable. It seems there is a lot less loyalty between employers and employees. This exposure leaves the door open for wrongful termination suits. As a business owner you are at risk no matter what your business practice. I know a lot of companies have specific ways to hire and fire employees and it is written in procedure. This is a great risk control to have it place but it is important to think about other ways to protect your assets (business).

Employment Practice Liability Insurance (EPLI) is one way to do that. EPLI is going to provide coverage for companies against lawsuits or claims filed by an employee, former employee, or employment candidate. EPLI typically insures against claims of discrimination (age, sex, race, religion, color, and nationality), sexual harassment claims, wrongful termination, emotional distress, breach of contract, among others. These type of claims can be expensive and there is typically not coverage for this on any other policy form except EPLI.

The company can either obtain a separate insurance policy for EPLI or obtain a Business Owner Policy that offers this coverage. Usually a Business Owner Policy will have small limits. An average coverage amount on a business owner policy is around $25,000. Although this is a nice amount to get if a claim is made it is typically not enough. Most stand-alone EPLI policies offer $1,000,000 in coverage. So depending on the amount of exposure you feel your company has you can decide which route is best for you. As always please consult an insurance professional for advice on this and many more insurance coverage.