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Does My Business Need Employment Practices Liability Insurance?

As a business owner, you face many risks each day. An employee could be injured on the job, or a devastating weather event could destroy the property. You would never risk being uninsured in these situations. What about employment-related claims, however? The cost of litigation could put your business in jeopardy if you don’t have proper coverage.

How To Protect Against Employment Claims

Employment practices liability insurance is a must for every business. General liability coverage won’t protect against claims of wrongful acts in the employment process. EPLI will safeguard your company in these unwanted situations. Claims could be filed during every stage of employment, including:

  • Hiring and recruitment process
  • Training of new employees
  • Performance reviews
  • Termination process
  • Enforcing company policies

Why Small Businesses Are at Greater Risk

Because small businesses have limited resources, the staff may not be well-versed in employment liability laws. Consequently, they face an increased risk of claims. With a smaller staff that is closely knit, it is also easy for personal feelings to play a big role in sticky situations. That’s why it’s critical for a small business to take employment situations seriously.

No business owner expects an employee to sue them, but they must be prepared just in case. EPLI can protect your business and the rest of your workforce against unwanted claims.