How to Get Employment Practices Liability Insurance
Employment practices liability insurance, also known as EPL, is a new type of insurance created to protect employers from claims initiated by employees or by customers because of employee behavior. Employment practices liability insurance most often protects employers from claims of wrongful termination or discrimination. Having a policy in place is a smart move that can save the company a substantial amount of money in the case of a claim.
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Instructions
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Get Employment Practices Liability Insurance
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Decide if you really need employment practice liability insurance. It is not required for every field. However, if you work in a field where minor mistakes made by employees can result in serious consequences, you may need liability insurance to protect both the individual employee and the company.
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Talk to a specialty lines insurer to decide which policy is right for you. Prices, range of coverage and requirements vary according to many factors. Because employment practice liability insurance is relatively new, you may wish to consult with a specialist who has experience in this type of policy.
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Make sure you understand the fine print of the policy when you sign up for it. You need to know what coverage is included (awards, punitive damages) and what isn't (lawyer fees, secondary claims).
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Get optional coverage if your company is large enough that you may encounter claims frequently or if you believe you may be subject to large claims. Optional coverage can be a good solution, since it covers not only damages but also lawyer fees.
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Decide on the right premium depending on the desired limit. Most companies will offer only two amounts as options. Since the difference in deductibles and premiums is not that great, you may be better off choosing the largest one, especially if you have more than 20 employees. This should hopefully offer enough protection, even if you have to deal with more than one claim within a single year.
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Tips & Warnings
Get insurance coverage from a well-known company, even if the premiums are slightly higher. This will offer more security and make you feel safer in your choice.
