Lawsuits are a threat that any business must contend with, but lawsuits from current or former employees can be particularly disruptive. Not only do such claims threaten morale among other employees, they can also prove extremely financially costly. A single claim for discrimination, harassment, retaliation, or wrongful termination can lead to legal fees that you not only didn't plan for, but also can't afford. Such claims, even if they are not valid, can also trigger unwanted media attention, which can further pose a threat to your business's bottom line. To get help covering some of the costs associated with a claim by a disgruntled employee, you need to invest in employment practices liability insurance (EPLI).
Why do Small Businesses Need EPLI?
Large corporations often have in-house human resources departments that can ensure the company stays on top of the latest state and federal employment laws and regulations. For most small businesses, setting up and staffing a dedicated human resources department is simply too cost-prohibitive. That makes smaller businesses especially vulnerable to lawsuits brought against them by disgruntled employees. Even the most reputable of companies can find themselves caught up in frivolous claims that can cost thousands of dollars or more. Furthermore, small businesses have fewer assets than large businesses, meaning that any legal judgments decided against them can be particularly devastating to the company's finances. With EPLI, your business will be protected from many of the expenses associated with an employee's lawsuit.
How Does EPLI Work?
EPLI can apply to all of your employees, including full-time, part-time, temporary and seasonal workers; volunteers; and independent contractors. EPLI is designed to cover you for losses associated with an employee-related claim, such as for alleged wrongful termination, demotion, sexual harassment, discrimination or retaliation. Furthermore, you can customize your policy for enhanced protection, including by adding coverage for inappropriate third-party conduct and punitive damages.
How do I Get EPLI?
EPLI can help your business succeed by protecting it from some of the worst fallout from an employment-related claim. AmVenture has the tools and resources to guide you through the different ways to mitigate your exposure to such claims and, if you are subject to employment-related litigation, EPLI coverage will be there to help make sure your business can weather the storm. Contact us today and one of our agents will work with you to find an EPLI policy that provides the best standard of coverage at a rate your business can afford.
This summarizes coverages and services that may be available in an insurance policy. Individual coverage may vary and may not be available in all states. In the event of a conflict, the terms and conditions of the policy will control.