EPLI Coverage: Does Your Small Business Need It?

work team sitting around a table in a meeting

Would your small business benefit from EPLI coverage?

As a small business owner, you might be inclined to think that if your employees ever have a problem, they would come to you. You believe you have a tight-knit team that is able to talk to you before an issue arises or becomes too large to solve. However, this often isn’t the case. If an employee feels mistreated or disgruntled, they may file a claim against your business. In fact, because smaller businesses have a close-working group of employees, it can be more common for an employee to take something the wrong way or to let something slip that offends someone else. That is why securing employment practice liability insurance (EPLI) is so important.

What is EPLI?
Employment practice liability insurance shouldn’t be confused with your general liability insurance. While general liability insurance covers your business for bodily injuries and property damages that you cause, EPLI covers claims alleging wrongful termination, discrimination, harassment, and retaliation. EPLI policies may cover breaches of employment contracts, defamation, and invasion of privacy, too.

Although it’s not a legal requirement for a company to have EPLI insurance, it is a good idea given the rising volume and costs of employment practices litigation. Here are a few reasons why you should consider coverage:

  • Employee lawsuits are on the rise. Rightfully or not, American employees are quicker to file lawsuits than they used to be.
  • Small businesses are at risk. Employee lawsuits are not just aimed at major corporations with deep pockets. Lawsuits can happen to any business, no matter what the size.
  • Employee lawsuits come in many different forms. Discrimination is the leading cause of employee lawsuits. Employees can also file a suit if you deny a promotion, withhold a job offer, fire an employee because of race/religion/age/sex/disability/citizenship. Employee lawsuits can also originate with claims of harassment, personal injury, illegal background checks, insufficient parental leave, unpaid internships, and numerous other causes.
  • Employee lawsuits are expensive. Even if your business is innocent, the cost of defending yourself and any settlements can be catastrophic for small companies. An EPLI policy provides financial protection for damages and defense costs

Be sure you have the right insurance in hand to protect your business. Contact the professionals at Lloyd S. Berkett Insurance Agency for quality business insurance. We serve Los Angeles, CA and surrounding cities with reliable coverage.

Lloyd Berkett Insurance

11150 W. Olympic Blvd.
Suite 610
Los Angeles, CA 90064

(310) 857-5757
(800) BERKETT | 237-5388
Fax: (310) 857-5750

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The Lloyd S. Berkett Insurance Agency, Inc. was founded in 1946 by Lloyd S. Berkett. Regarded as one of Southern California’s most successful, well-respected and innovative independent insurance agencies, ... Read More

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