As we approach open enrollment season, everybody is thinking about their medical and dental insurance. But what about your business? Are you protected from lawsuits? Is your team?
As part of our new “Coaches Corner” campaign, World Insurance Associates shared some liability insurance basics with us below.
Benefits of Employment Practices Liability Insurance
Business leaders make decisions each day on a range of issues including things like hiring, firing, compensation, promotions and the work environment. Every one of these decisions impacts your employees and, depending on the outcome, could result in a claim related to wrongful employment practices.
These claims can disrupt business, hurt morale, damage your reputation and lead to serious financial damages. Thankfully, employment practices liability (EPL) insurance can provide organizations with protection from the above risks. Specifically, EPL insurance provides the following to policyholders.
Coverage for Alleged Acts
EPL insurance not only protects organizations from actual wrongful acts, but alleged acts as well. Specifically, EPL coverage can safeguard an organization from claims related to discrimination, harassment, retaliation and wrongful termination.
Timely Responses to Lawsuits
Employees suing their employers is common, and organizations will want to be prepared. This is especially important when you consider that there is no cap on how much a jury can award and that settlements in employment-related cases can easily reach six figures.
Access to Legal Help
Strong EPL policies provide the insured with access to legal resources. This can prove invaluable if you need advice quickly.
Risk Management Strategies
While employment-related lawsuits can arise at any time, organizations that take the time to implement basic risk controls are better equipped to avoid claims altogether. Many insurance companies provide access to risk management training and human resources consulting. These services can greatly reduce the likelihood that your company is sued by an employee.
Additional Protection for Your Directors and Officers
While directors and officers (D&O) insurance can defend against employment-related lawsuits, dedicated EPL insurance is necessary for many organizations. Having a policy that provides separate coverage for lawsuits connected to wrongful terminations, discrimination, invasion of privacy and similar employment claims ensures that the limits on your D&O policy aren’t exhausted unnecessarily.
Find Out What Insurance Your Business Needs
If you’re curious about EPL or other insurance policies for your business, consider meeting with one of HGC’s insurance coaches up to three times for free.
Scott Olmstead
- With close to 40 years in the insurance industry, Scott has worked with numerous start-up businesses helping identify their risks of loss and the best way to protect the business through risk management, transfer of risk strategies, contractual insurance requirements and insurance products.
- He presents a consultative approach to the “what if” questions.
Email us to book with Scott.
Sarah Bennett
- Sarah is a personal and commercial lines insurance professional with Kapiloff Insurance with 16 years of experience in the field.
- Commercial insurance has many facets that can be confusing when a new business is created. Sarah will offer guidance regarding your business’s insurance needs and quotes as requested.
