The first type of claim that EPLI covers is Discrimination.
Federal, state and local discrimination laws prohibit discrimination based on things such as gender, race, marital status, religion, sexual preference, disability, pregnancy and more. Remember, these situation can occur within departments and with individuals who simply do not get along. They happen even in companies with all the proper human resources and sensitivity training, and they happen at companies with excellent department managers and professional employees. The more employees a company has, the higher the chances of these claims happening. That's precisely why you need to consider coverage for situations like these.
The next type of claim that EPLI covers is Sexual Harassment:
An EPLI policy can cover sexual harassment claims as well. Sadly, sexual harassment claims against co-workers and supervisors still occur frequently in many industries, even it today's professional environment. In a perfect world, this stuff would not happen, unfortunately, the reality is that sexual harassment still goes on despite all the successful lawsuits over the recent years.
One more type of claim that EPLI covers is Wrongful Termination.
Anytime you fire or layoff an employee you are open to a wrongful termination lawsuit. And it can happen even when you don't fire someone. Some employees who actually quit on their own will bring a lawsuit against your company claiming they could not tolerate the work environment. You can also get coverage for this situation as well.
There are many other situations that EPLI can cover in addition to these three. Before you purchase this type of policy, ask your insurance broker or agent any or all of the following will be covered as well...
Libel, slander, and defamation Assault and battery Promotion or hiring decisions Invasion of privacy Employee benefits mismanagement claims
Does Your Business Need To Buy EPLI?
That all depends on many factors including your risks and the size of your business. Obviously, if you are an independent contractor with no employees you have little exposure to these types of claims. However let's say you are a large federal contractor with hundreds of employees. You're required by law to have many different commercial insurance policies in place before you can even bid on a contract. One of these policies will likely be EPLI coverage. Every business is different, so you need to contact a reputable business insurance broker or agent to discuss what specific policies you need for your company.
How Much Does EPLI Coverage Cost?
Your cost will depend on many factors including the number of employees you have as well as other company specifics like company policies and the risks associated with your business. Naturally, the amount of coverage you require will have a direct effect on the cost of your premiums. A $1 Million policy will cost less than a $10 Million policy. You can also keep costs down by choosing a higher deductible, just be sure not to select a deductible amount your company cannot afford to pay out. As with any liability type of insurance, there are exclusions with EPLI, for things such as criminal activity and more. Be sure to ask what specific exclusions your policy has before accepting any policy.
EPLI quotes are available both online and offline via most any commercial insurance provider. Start with your current General Liability Insurance provider as you may be able to add this onto your business insurance policy and save money versus buying it separately.
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Most businesses are required by state or federal law to have many different commercial insurance policies including EPLI in many businesses. Every business is different, so you need tofind out what specific policies you need for your company. Find out at: http://contractors-liability-insurance.org/
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