Hello to all of my small business owners and insurance decision makers out there! Today I would like to discuss an important topic that could literally make or break your business. Over the years, I’ve noticed that many companies/employers do not realize that employee initiated law suits/claims are excluded from coverage under your General Liability policy. Yes, that is correct…if you are sued by an employee you will be forced to dig in your own pocket to defend the suit and pay any potential restitution! This often results in bankruptcy for a small business.
Thankfully, there is a product that will protect you in this scenario. It is an underutilized coverage called EPLI (Employment Practices Liability Insurance). Depending on your industry, it can either be added by endorsement or purchased as a separate policy. EPLI protects a business from employee lawsuits arising from wrongful termination, discrimination, sexual harassment, and retaliation. In addition, it covers claims from a variety of other types of inappropriate workplace conduct, including (but not limited to) employment-related defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. If you have one or more employees, this coverage is an essential component to any risk management plan.
Whether you are a Commercial insurance client of BIG Insurance Solutions or not, please give us a call to determine if you have EPLI coverage. And if the answer is no, we will walk you through the options available to protect your business!
If you'd like to learn more about us and the various types of Commercial Insurance we offer, click here.
Call us today to get a quote! (512) 280-5123.