Employment Practices Liability Insurance is important insurance for companies to consider and invest in. The Employment Practices Liability Insurance (EPLI) is an insurance that provides coverage for business against accusations and allegations from workers that claim that the employers have violated or infringed upon their legal rights.
These types of accusations are serious and can cause a lot of damage to the business reputation and even led them to forced foreclosure by the relevant authorities. Golden Benchmark offers Employment Practices Liability Insurance for companies that are prone to such allegations.
Employment Practices Liability Insurance provides protection against allegations and lawsuits on sexual harassment, discrimination on the basis of sex, race, age or disability, wrongful termination, breach of employment contract, failure to employ or promote, negligent evaluation, wrongful discipline, deprivation of career opportunity, mismanagement of employee benefit plans and others.
Most insurance companies offer EPLI as a stand-alone or separate coverage, and some insurance companies offer the EPL insurance as an extension available on additional charges with their Business Owners Policy (BOP). It is also often added as an extension to the General Liability Insurance policy. Employment Practices Liability Insurance should be included in the overall protection insurance plan of the companies for it provides necessary safeguards for the business. Small businesses are more vulnerable to such claims and lawsuits and need a good insurance policy in place to protect their business and assets.
The price point of an Employment Practices Liability Insurance coverage depends on a number of factors such as the number of employees employed by the company, the percentage of employee turnover, the type of industry the company works in, the area of operation, the company’s claim history, written policies, and more. These risk factors end up deciding the price of the insurance policy.
EPLI coverages are usually written on a claims-made basis and that means the policy only provides for those claims that were made during the coverage period mentioned in the policy. No claims made prior to the purchase of the policy and after the relapse of the policy will be covered by the insurance policy.
The EPLI policy generally provides coverage for legal costs and reimburses the company of all costs related to defense and lawsuits irrespective of whether the company wins the lawsuit in court or not. EPLI also pays for the damages to the injured party if the lawsuit is favorable for the injured party. However, the insurance policy does not cover punitive damages or civil or criminal fines.
Employment Practices Liability Insurance coverage is inclusive of online support, includes sample forms and policies to be implemented, links to federal and state legal sources, web-based or personal training modules, legal advice and audit of company policies and workplace conduct. Implementation of effective hiring and screening system, employee handbook policies audit, documentation of complaints and proper system to process the complaints, claims along with steps to be taken need to be employed to minimize the chances of lawsuits and such allegations.
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