Protecting your business from employee claims.

While you may assume that workers compensation insurance covers the cost of all employee lawsuits, this simply isn’t the case.  Workers compensation will only cover the cost of lawsuits filed by employees who were injured while on the job.  So, how can you secure commercial insurance in Lubbock, Texas for the lawsuits that claim discrimination, sexual harassment, wrongful termination, and so on?  This is where employment practices liability insurance or EPLI coverage kicks in.  Here’s what you need to know about this type of commercial coverage.

What is EPLI?

In general terms, EPLI is insurance that is designed to protect your business against employee claims of unfair treatment.  EPLI provides coverage for many types of employee-filed lawsuits, such as those related to:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

Do I really need this coverage?

Many business owners forgo EPLI coverage because they believe that their employees would never sue them.  While you may treat your employees fairly and have never had an EPLI claim in the past, you never know what the future holds.  In some cases, a single misinterpreted statement or a poorly worded question can be enough for an employee to file a claim.  Because EPLI-related lawsuits are excluded from coverage under your other liability insurance policies, you would be left covering the cost of the lawsuit all on your own.  Even if you were to win the suit, the cost of your legal defense could easily exceed hundreds of thousands of dollars.  The only way to ensure that this substantial cost does not come out of your business’s savings is by securing EPLI coverage.

How much does EPLI cost?

The cost of this coverage depends on the type of business, the number of people it employs, and other various risk factors.  As every business is different, you will need to speak to an experienced agent to get a quote for your company.

This is what you need to know about EPLI coverage.  Are you looking to secure this commercial insurance in Lubbock, Texas?  If so, then contact the experts at Promised Land Insurance Group.  We are ready to get you the coverage that your business needs today.

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