Does your business have employees? Do you welcome your clients, future clients, etc. onto your business premises? If you answered yes to either of these questions then you need EPLI coverage. Some insurance policies offer this coverage under your General Liability insurance, but they are usually for an amount less than one would need in the event of a claim and with restrictive covered acts. A standalone EPLI policy will not only offer higher limits of liability but also broader coverage.
EPLI can cover things from improper hiring/firing of employees, discrimination, incorrect payment of overtime wages, etc. as it relates to the way you run your business. For example, is it legal to terminate someone with a bad driving record or an employee who is rude or swears at your customers? The answer is not as simple as “yes” or “no.” A business’s action may depend upon circumstances such as whether an employee's duties involve driving a company vehicle, or directly involves customers and if the company can prove that such behavior fails to meet the applicable job standards.
Outside of insurance, the best defense against employment practice (EPLI) claims is to know the law in your state and then create company policies and procedures that meet or exceed its legal standards. The U.S. Department of Labor also offers a Small Business Handbook from their website. From an insurance perspective, many companies offering the coverage also offer assistance in writing policy and procedure manuals and other ways to reduce the potential for claims involving sexual harassment, wrongful termination, discrimination, etc.
We represent numerous companies that love to write this coverage and can do so at minimal cost to you as compared to what an employment practices (EPLI) claim could cost. If you own/operate a business do the right thing and make sure you are properly covered. No business is immune from these claims. Contact our team today to ensure you are properly covered!