Every business in Northeast Ohio with employees or customers is exposed to potential employment practices liability claims. In the year ending December 31, 2019, the Equal Employment Opportunity Commission (EEOC) stated there were 72,675 charges against employers for discrimination. Read More!
Employment Practices Liability Insurance (EPLI) should be part of your business insurance and loss mitigation program. Uninsured claims could shutter your business permanently. According to the Society of Human Resource Management, the average cost to defend an EPLI claim is approximately $160,000.00. While the premiums for EPLI vary based on the number of employees you have and your interactions with customers and others, the value can clearly be seen.
There are two major parts to most EPLI policies, 1st party coverage and 3rd party coverage.
1st Party coverage protects the business against employees and prospective employees claiming their legal rights have been violated. These claims can include wrongful termination, discrimination, sexual harassment and retaliation, now accounting for 54% of all EEOC filings. Wage and Hour claims can be included in your policy for an additional charge. (typically there is a sublimit for these claims.) These claims can include minimum wage violations, unpaid meetings and or training and unpaid meals that employees are expected to work through.
3rd Party coverage protects the business and its employees against customers, clients or vendors, who allege they were discriminated against or sexually harassed by the employees of the business.
Many businesses believe their General Liability policy will protect them from this type of loss. However these loses are excluded, making the need for EPLI insurance an integral part of your insurance portfolio. The options within most EPLI policies create the need to discuss this valuable coverage with your Trusted Choice Insurance Agent. So before your current policy expires, contact the team at Richey-Barrett Insurance.
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