Is your business adequately protected?
As a small business owner, it’s likely you foster a close relationship with your employees. Nevertheless, even if you have a tight-knit group, the possibility of a worker suing you and your company one day isn’t completely impossible. American companies actually face a 12 percent chance of being sued by their employees at one point or another. And it’s not just large corporations that are at risk; approximately 41.5 percent of employee claims are filed against businesses with less than 100 workers. The incidence of these lawsuits has grown exponentially as more people realize their legal rights in the workplace.
The only way to protect your company is to make sure you have the proper coverage, and to understand that your general business liability policy may not be enough. Today, many small businesses are adding employment practices coverage even though they already have worker’s compensation in place.
What is employment practices liability insurance?
Employment practices liability insurance (EPLI) protects your company and all of its business assets. In the event that you are sued by an employee, it deals with the following types of claims:
• Gender or age discrimination
• Sexual harassment
• Negligent compensation
• Failure to promote
• Denial of career opportunity
• Intentional infliction of emotional distress
• Wrongful discipline
• Wrongful termination
• Libel or slander
• Invasion of privacy
• Emotional distress or mental anguish
• Breach of contract for employment
With an EPLI policy in place, you have defense against claims directed at your company. You will also have access to advanced coverage for judgments, settlements, court, and attorney fees related to the claim. EPLI differs from general business liability policies by providing a more specialized coverage. And though it’s not always understood, worker’s compensation policies do not protect against discrimination and other related claims. Here’s a look at what worker’s comp covers:
Worker’s comp deals with accident and injury
Worker’s compensation addresses any accidents, injuries, or illnesses that are work related or occur on your property. Whether the injury is caused by an employee’s carelessness or is purely a freak accident, this policy covers any related expenses. In most states, worker’s compensation is required to ensure a healthy and safe work environment. Benefits of worker’s comp include:
• Coverage for any medical expenses resulting from the injury or illness (including doctor’s visits, medication, and surgery)
• Replacement income in the event that the employee is unable to work while recovering
• Compensation for permanent injury
• Payout to family or survivors if a worker is killed on the job
• Retraining or new job placement (in the event that the employee can no longer perform their original job responsibilities)
A key component to worker’s compensation is that your employee cannot file charges against you if they are collecting benefits from this policy.
Protect your company with complete coverage
Many small businesses choose to be proactive and invest in both EPLI and worker’s compensation coverage. Only having one or the other leaves you at risk of certain types of losses, so it’s a safer bet to cover all of the bases.
If you are interested in finding out more about an EPLI policy for your business, give us a call today at 305-648-7070 or fill out our online quote request form. As a leader in the insurance industry, we have extensive experience in providing top insurance solutions to small businesses.