“Why would my company ever need employment practices liability insurance? Nothing bad is going to happen.” The PEO professionals at Total HR Management are surprised by how many of our client companies came onboard with this initial attitude. They literally did not realize how a lack of an EPLI policy can truly place a business on the edge of dire jeopardy. If something with an employee does go wrong, the excellent EPLI policy offered under a professional employer organization’s group umbrella can save your business and keep your doors open.
Employment Practices Liability Insurance A Necessity
In the 21st century, from the moment that a manager starts the pre-hiring process until the exit interview, the company is vulnerable to an employment-related lawsuit. Such lawsuits are much more common that you might imagine. This is why your business should take a hard look at whether it can afford to defend itself against alleged wrongful employment practices accusations.
If you are unwilling to crack open the company’s piggy bank and put the future of your company at risk, you need an EPLI policy yesterday. Total HR Management can help get you one today.
As an insurance solution, employment practices liability insurance (EPLI) protects your company against wrongful termination, discrimination or sexual harassment suits from your current, prospective or former employees. This coverage applies to directors, officers and employees, and can sometimes extend to third party liabilities as well.
Total HR Management has seen EPLI coverage protect client companies from unexpected lawsuits, both spurious and real in nature. While the majority of employee lawsuits are groundless, defending against any lawsuit is costly and time-consuming. This is why your company needs EPLI armor.
Three Out Of Five Employers Will Be Sued
According to researchers, three out of five employers will be sued by a prospective, current or former employee while they are in business.
Did you know that the vast majority of general liability policies held by companies do not include employment-related lawsuits? Such non-EPLI coverage leaves a company’s assets 100% vulnerable to such an employee lawsuit. As costs for litigation and damage awards climb, experts predict that employment liability will only become more complex.
Total HR Management wants you to know the manner in which your company will be covered under such a policy. EPLI policies provide protection from the following wrongful employment practices and many types of employee lawsuits, including —
- Sexual harassment
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
Can you imagine one of these potential problems hitting your business hard? In fact, it’s probably more than possible. Such issues don’t always lead to employee lawsuits, but you need to be ready and prepared to protect the future of your business if they do. EPLI policies reimburse a company against the costs of defending a lawsuit in court and for judgments and settlements. An employment practices liability insurance policy covers legal costs, whether a company wins or loses the suit
Total HR Management Can Help
Does it sound like employment practices liability insurance (EPLI) could make sense for your company? The HR managers at Total HR Management can explain exactly how EPLI coverage will benefit your business model. Isn’t it time to be protected? To learn more, please call Total HR Management at (800) 975-5128 today.
No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.