Is your business at risk of employment practices liability claims? If so, then you need to buy employment practices liability insurance coverage. This type of insurance protects against employment liability costs.
Many companies with employees need to get EPL insurance. Due to the current worldwide epidemic, more businesses are purchasing EPL insurance policies. Employees find more reasons to sue employers due to the quarantine.
Just by purchasing EPL insurance, you lower your risk of being liable for employment practices. You also have more legal help if an employee files a lawsuit against you.
Read this EPL insurance guide to understand its importance for your business:
Who Needs Employment Practices Liability Insurance?
If you have employees, then you need employment practices liability insurance (EPLI). This insurance protects your business from employee lawsuits alleging wrongful termination, sexual harassment, discrimination, and other employment-related claims.
EPLI is essential for businesses of all sizes. Even if you have just a few employees, one wrongful termination claim could cost you hundreds of thousands of dollars in legal fees and damages. And if you have a large workforce, the potential exposure is even greater.
How Much Does EPLI Cost?
The cost of EPL insurance will vary depending on the size and type of business and the amount of coverage you need. However, you can expect to pay anywhere from a few hundred to a few thousand dollars per year for EPLI coverage.
If you have a small business with fewer than 10 employees, you can expect to pay around $500 per year for EPLI coverage. For businesses with 10-50 employees, the cost will be closer to $1,000 per year. Larger companies with more than 50 employees will pay closer to $2,000 per year for EPLI insurance.
What Are the Eligibility Requirements?
Generally, your business must have at least five full-time employees to be eligible for EPL insurance. Some insurers may require more, though this varies by state.
In addition, most insurers will not cover businesses with a history of labor disputes or lawsuits. If you’re unsure whether your business is eligible, it’s best to speak to an insurance agent.
Finding the Right Policy
When shopping for EPLI coverage, it’s important to find a policy that meets the specific needs of your business. The amount of coverage you need will depend on the size and type of your business and the number of employees you have.
You’ll also want to make sure that the policy covers any potential risks associated with your business, such as client interactions or employee contracts.
Find Free Quotes for EPLI
If you are looking for free insurance quotes for EPL insurance, a few options are available. One option is to contact an insurance agent or broker or ask for a quote from a workers comp insurance company.
Another option is to use an online insurance quote comparison site. These sites allow you to enter your information and get quotes from multiple insurers.
The Bottom Line
Employment practices liability insurance protects businesses from lawsuits alleging unlawful employment practices. If you are a business owner, you should consider purchasing this insurance to protect your business.
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