Why Employment Practices Liability Coverage is an Asset

Operating a business can be challenging as you navigate serving your customers while maintaining employee morale. Accidents happen sometimes, and as much as you try, you won’t be able to keep all of your employees happy. Consider the benefits of Employment Practices Liability Coverage.

How Does EPLI Protect Me?

EPLI protects your business if a serious issue arises in the workplace. Maybe the impacted party is planning to sue you. Your entire business could be in jeopardy. Even if the accusations aren’t true, the aftermath of the process could damage your reputation. EPLI covers your legal fees as the litigation process moves forward. Wrongful termination and harassment allegations are expensive to fight in court without the safety net that EPLI provides.

What Coverage Does EPLI Offer?

It is recommended that you take some time to assess your business. Think about your number of employees, the industry you are involved in, gross revenue, and other variables. This will help you determine the coverage level to protect your business if a lawsuit arises.

What Are Common Employee Disputes?

• Breach of Contract
  Your business may rely on the services of contractors. One of the contractors may sue based on allegations that you did not uphold your end of the contract.
• Employee Discrimination
  Employee discrimination lawsuits could ruin a company. Your employee may sue you, believing they have proof that they were mistreated due to age, gender, race, or religion. Purchasing Employment Practices Liability Coverage could save you thousands of legal fees.
• Sexual Harassment
  Maybe one of your employees mentioned that they were sexually harassed, but you failed to investigate the claims meaningfully. EPLI protects your business if the impacted party decides to sue you.
• Wage and Hour Disputes
  These disputes often involve claims of unpaid overtime, minimum wage violations, or misclassification of employees as exempt from overtime. Ensuring accurate record-keeping and compliance with labor laws is crucial for businesses to avoid wage and hour disputes.

How Does EPLI Differ from Liability Insurance?

Employment Practices Liability Insurance (EPLI) differs from general liability insurance by focusing specifically on claims related to employment practices. While general liability covers a wide range of accidents and injuries, EPLI is designed to protect businesses from claims like workplace discrimination, harassment, wrongful termination, and other employment-related disputes. EPLI provides coverage for legal defense costs, settlements, and judgments associated with these claims, helping businesses mitigate the financial impact of employee-related lawsuits, which are not typically covered by general liability insurance.

Get the Proper Business Protection with GrayStone Insurance Group

Employment Practices Liability Coverage (EPLI) serves as a crucial safety net for your business during unforeseen crises. It shields you from the financial burden of defending your business in legal disputes, potentially preventing crippling debts. Contact us today if you have inquiries or concerns regarding EPLI, our knowledgeable team at Graystone Insurance Group is here to provide guidance and assistance, ensuring that you have the protection you need for your business in times of need.

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