Getting sued by one of your employees is expensive. If you’re lucky, you might settle out of court and look at about $10,000 in costs. But that’s the low end of the spectrum. Even if you go to court and your case is dismissed, you’re probably paying about $10 to $15,000 out of pocket. And if your case goes to trial, you’re looking at hundreds of thousands of dollars. Very few businesses can come up with that kind of money without feeling it somewhere critical. That’s why many employers choose to invest in employment practices liability insurance, or EPLI coverage.
We’ve already covered the basics of EPLI, so let’s dig a little deeper. Here are three things every business owner needs to know about employment practices liability insurance.
- You might be surprised why you get sued. Most business owners buy EPLI coverage to protect against things like wrongful termination and workplace discrimination. But new types of lawsuits are popping up all the time. Your unpaid interns, background check process, and maternity/paternity leave policies could all put you at risk for a lawsuit.
- Your business size doesn’t affect your need. Almost every big business will carry EPLI coverage. That doesn’t mean the little guy can skip it, though. The number of employees you have might affect your statistical likelihood of getting sued, but it doesn’t protect you completely. All it takes is one upset employee to find yourself in court.
- You can take steps to lower your premiums. The riskier your business looks to your insurer, the more they’ll want you to pay to get coverage. Think through your exposures and take steps to cover them. A thorough employee handbook and ongoing workplace training can help you score lower premiums.
Do you want more information about EPLI coverage? Look no further! Our team at Rothstein Insurance has years of experience tailoring employment practices liability insurance policies to meet the specific needs of the businesses we serve. For more info or to get protection, contact us today.