What it is and Why You May Need it!
In these days when giving someone a funny look can land you a lawsuit, your business needs to be protected for virtually everything. One such protection you may be missing is Employment Practices Liability Insurance or EPL. EPL insurance protracts you and your business from lawsuits filed by disgruntled employees. Most larger companies carry this insurance, and many small businesses are opting to have it too.
What is Covered?
EPL insurance protects employers from many areas of employee lawsuits. EPL insurance will cover sexual harassment suits, discrimination, wrongful termination or breach of contract claims. It may also cover negligent evaluation, failure to employ or promote, and wrongful discipline, as well as deprivation of career opportunity, wrongful infliction of emotional distress, and mismanagement of benefits. Since policies are based on the provider who covers your business, the lawsuits that are covered may vary.
EPL insurance covers those protections found in Title VII of the Civil Rights Act of 1964, the ADA (1990), ADEA (1967) and FMLA. The Equal Employment Opportunity Commission (EEOC) in charged with enforcing these laws and currently recognize eleven separate discriminating practices of employers. In addition to the federal laws in place, each state has its own set of laws that need to be recognized and adhered to.
What Does it Cost?
Pricing depends on the amount of coverage and which areas are part of the insurance policy. Many providers also consider the type of business you run, how many employees you have, and whether or not you have been previously sued for wrongful employment practices into the price of the insurance policy.
Like other professional liability insurances, EPL insurance policies kick in if a claim is made and are dependent upon the terms of your policy. In general, the insurance company will reimburse the cost of obtaining a defense lawyer. They will also cover other legal fees, judgments, and settlements. If another policy covers the claim, EPL will not, and civil or criminal fines and punitive damages are not covered either. Your policy may also state that you had to be covered at the time of the incident as well as at the time the claim is filed to receive benefits.
Protect Your Business
The best way to protect your business is to educate your employees before a problem arises. Be clear on all company policies and have these policies accessible to all employees. Require mandated sensitivity training and update any outdated hiring practices. The most important step you can take is to document everything, even the smallest incident! Keep a record of the incident and what steps are taken to prevent and solve disputes.
Even with preventative measures, your business may face an employee lawsuit. In that instance, you want to make sure you’re protected by Employment Practices Liability Insurance. Landmark Risk Management and Insurance is the company to get you covered! Our team of experts knows exactly what you’ll need to ensure you’re protected from any scenario. Contact us to learn more about EPL, or to get your coverage started today!