Every state seems to have a “One Call, That’s All” lawyer. The lawyer who has billboards all over saying he will get your money! This is an unfortunate reality and we have seen a rise in all kinds of lawsuits especially at work.
Employee claims against businesses are on the rise, and all businesses should be prepared. General liability insurance is good, but too many businesses don’t have employers practices liability insurance (EPLI).
These are special policies that help protect your business from issues dealing with your employees. General liability insurance usually doesn’t cover these areas. Read on to learn more about the benefits of EPLI for your business.
How Employers Practices Liability Insurance Protects
The right kind of EPLI can act as an umbrella policy for your business. It can cover areas that your average general liability insurance may not cover, especially when dealing with employee claims.
EPLI covers the different claims or lawsuits that employees may file against a company. These may be current employees, former employees, or candidate employees. They can also cover seasonal and independent employees.
The majority of EPLI policies are occurrence-based policies. This means they need to be in effect when the occurrence happens. If the policy has a retroactive date, coverage can go back to the date agreed to by the company.
This is important in case a lawsuit happens from an event that happened five years ago. Most of the time, this means your coverage at that time will cover the liability, even if your current coverage is different.
Getting the Right EPLI
The right EPLI starts by understanding your own general business liability insurance. You want to know what coverage you have and what coverage is lacking for your business. Here are a few things to consider:
Misclassification Claims
With the growth of independent contractors and gig workers, employers have to be more careful about their workers. Some states are changing their laws to discourage and prevent the misclassification of employees.
California’s Assembly Bill 5 is an example of these new laws. This law puts the burden of proof for independent contractors on the employer and not the employee. This significantly increases company liability.
Termination and Discrimination Practices
Wrongful termination lawsuits have forced companies to adopt strong guidelines for termination. However, lawsuits can still happen even if the rules are followed. An EPLI policy protects the company when this happens.
Age discrimination is a growing problem across the country. As the number of workers aged 55 and up increases, so have lawsuits based on age discrimination.
Health and Safety Standards
Health and safety standards in the workplace have become a greater concern for employers today. Guidelines and regulations have to be followed and maintained or your business could be sued.
EPLI gives you an extra layer of protection for your company in case of accidents. An accident may not be out of negligence, but the cost of litigation can still damage a company.
Partnering
EPLI should not be entered into alone. Your business should find partners who can consult and help you understand this world. Reading an article doesn’t help as much as having an expert guiding you through your options.
The best options come with independent agents who can fit your needs with the right insurance. Small businesses are most at risk because they are so busy running the company, they don’t have time to worry about insurance.
Finding an independent agency to partner with helps you gain experts who can guide you and help you protect your business.
Reducing the Chances of Needing EPLI
Proactive businesses of all sizes should reduce their chances of needing EPLI. They can do this by focusing on a few key areas to protect themselves.
- Handbooks and Policies – Every business should have handbooks and policies that apply to everyone and are followed by everyone.
- Regular Training – Establish patterns of training for all employees and keep everyone up to date with workplace practices.
- Employee Focus – Make sure to have a full screening process for all employees and perform regular employee performance reviews.
- Keep Records – When you do all of these things, keep records to protect your business and show how you are meeting standards.
Most quality independent EPLI agencies should be able to assist you with these areas. Let them guide you, and don’t just do the first thing you find on a Google search because standards can change year to year.
The Financial Side of EPLI
The point of EPLI is to protect your business from financial disaster through lawsuits. Every business is different and their needs for the right business umbrella policy are different.
This means that the right EPLI for your business can look different from other businesses. There are limits of employers practices liability insurance and these are based on what type of coverage you have and your needs as a business.
You don’t want to rush into coverage. Take the time to research and make sure the different aspects of the policies fit your business. You want your employees protected and you want your business protected at the same time.
Having a Guide
Going through the maze of employers practices liability insurance can seem overwhelming. The world seems filled with so many lawsuits and so many lawyers!
Getting a guide to lead you and help you with EPLI can help put your mind at ease. Kicker Insures Me Agency has been a premier independent agency for the Pasadena area as well as the entire state of Texas.
We are an independent agency that accesses multiple companies and products to find the right fit for you. This gives us the ability to give unbiased and objective advice instead of selling only one option.
Contact KIMA and let us provide you with an EPLI quote. They can help you find the right coverage and give you advice on ways to protect your business.