There's an old saying that is at the heart of all insurance. An ounce of prevention is worth a pound of cure. That couldn't be more true than for this next type of insurance we're going to talk about for your business.
What does EPL stand for and what does it provide you?
Employment Practices Liability (EPL) insurance coverage protects employers from liability for wrongful employment practices. Most EPL policies cover claims for sexual harassment, discrimination, and wrongful termination.
What are some examples of what this looks like in the workplace?
If we here at CH Insurance were to see a claim from a business owner through their EPL coverage, it could be for one of the following reasons:
Discrimination
Harassment
Retaliation
Violation of the Family and Medical Leave Act
Wrongful discipline
Wrongful failure to promote
Wrongful termination
"A common employee complaint filed centers around wage and hour violations including wage calculation, overtime calculation and job classifications. Employees file wage and hour lawsuits accusing employers of mis-classifying employment status or mis-communicating an employee’s eligibility to receive overtime," as stated by one of our carrier partners, The Hartford.
Does a business' EPL coverage extend to independent contractors? Yes -- Business owners' EPL coverage is also extended to independent contractors, as reaffirmed by the recent case involving UBER and their drivers. You can learn more about employee vs. contractor coverage here.
Even if a business and its' leadership have done nothing wrong, an employee can attempt to sue you. It's just smart business to have EPL coverage included in your premium. Your CH trusted adviser can help you navigate the not-so-easy-to-understand waters when it comes to protecting your business and all that's important to you. You need someone in your corner who knows the ropes and has your back. Every business owner should have EPL insurance. We're in your corner!