California Business Insurance: Are you familiar with Employment Practices Liability Insurance?
Employment Practice Liability Insurance (EPLI) has been an important topic of conversation over here at Professional Choice Insurance. It is integral that your California business insurance company provides you with the latest information there is to know, especially if it could affect your California small business. EPLI is a relatively newer type of insurance coverage, which in no way should make this type of coverage overlooked. Lets chat about what EPLI is and why your California Business, no matter how small, or large, should not be without it.
Do you remember when you started your new job and you sat through, what must have seemed like hours, of HR trainings? Well, there was a method to their madness J. TechInsurance wrote a very interesting article about EPLI and stated, “Employment Practices Liability Insurance (EPLI) typically covers allegations of discrimination, wrongful termination and sexual harassment of employees. EPLI protects companies against claims that past, current and prospective employees of the company bring against the company, its directors and officers, and its other employees.” Every company is at risk for being sued, even non-profit organizations.
We all know that we are living in difficult economic times. Many California business companies are looking for ways to save before having to lay off employees. Dropping your Employment Practices Liability Insurance is not a recommended way to save your CA business money; in fact it could potentially put you out of business. The amount of money these cases cost can be astronomical. An employee who is terminated and is unable to find new employment is more likely to blame their former employer than someone who is terminated and able to quickly find a new job. Therefore when the economy is hurting, more individuals are to be expected to file EPLI claims.
The question should not be “why does my California Business need Employment Practices Liability Insurance,” it really should be “why would my CA Business not have EPLI?” However, for those of you who need further persuasion the article on TechInsurance also stated, “Over the past decade, the number of discrimination cases has more than tripled in the United States, and a vast majority of these cases are filed against employers. Employment issues make up 30 percent of all civil litigation in the United States, and charges filed through the Equal Employment Opportunity Commission increase virtually every year.”
Monitor Liability Managers provided some very interesting statistics and graphs in regards to Employment Practices Liability Insurance. Did you know that, “The Equal Employment Opportunity Commission (EEOC) recorded nearly 100,000 charges in 2010 - a record high and a 7% increase from 2009?” In addition, “The average cost of an EEOC lawsuit in 2010 exceeded $270,000.”
I cannot express how vital it is that you have a trustworthy CA Insurance agent who is aware of your personal and business needs. Employment Practices Liability Insurance can vary in pricing as well as coverage. Each company is unique and if your EPLI premium is high it doesn’t necessarily mean you are getting the greatest amount of coverage. Pricing for EPLI policies is based on your company’s size, as well as your company’s industry. According to the TechInsurance article, “insurance underwriters consider all of the following information in structuring the premiums and deductibles: The company’s size (in terms of sales), The number of employees, The company’s core business or industry, The company’s claims history, The company’s hiring and firing practices, as well as turnover rates, and The company’s written policies and procedures regarding employees.”
Professional Choice Insurance wants to make sure you are kept up-to-date when it comes to your personal insurance and business insurance needs. Call us today for a free California Insurance quote. We would be more than happy to further discuss the importance of Employment Practice Liability Insurance, so that you can better focus on the success of your California Business.
