Tag Archives: EPLI

Safeguard Your Company With PEO Employment Practices Liability Insurance

PEO Employment Practices Liability Insurance (EPLI) is one of the smartest reasons for your company to work with a professional employer organization. Did you know that 6 out of 10 employers in the United States have had to deal with employment lawsuits in the past? 60% is not a number to take lightly when considering the importance of PEO Employment Practices Liability Insurance. Such employee-related lawsuits happen with greater and greater frequency as shark-like lawyers looking for an easy payday circle the waters. In fact, did you know there is a higher likelihood of a business being sued by an employee than by either a third party like a competitor or a customer?

PEO Employment Practices Liability Insurance = Protection

peo employment practices liability insurance

PEO Employment Practices Liability Insurance

If employee lawsuits were routinely thrown out of court, then the threat would not be so huge. However, there is a number that’s even more frightening than the 60% of employers facing such lawsuits in the past. Indeed, a more alarming statistic is that disgruntled employees end up winning such employment litigation cases 68% of the time. Given the threat to the financial stability of your company, PEO Employment Practices Liability Insurance is needed. EPLI provides companies with insurance coverage, including the cost of legal defense for facing discrimination, sexual harassment, wrongful termination, workplace torts and a variety of other employment-related claims.

The rise of the Internet has led to a much more significant threat posed by a disgruntled employee. In the modern world, employees have become not only more diverse and independent but also more knowledgeable and resourceful. Such knowledge and resourcefulness have led to a sharp rise in employment-related lawsuits. Such lawsuits affect companies across the board, no matter how large or small. In fact, being a small to mid-sized companies do not offer any protection whatsoever from employee-related claims. Is it surprising to you that 41% of all EPLI claims are against companies with 15 to 100 employees? Given this proven fact, safeguarding your company with PEO Employment Practices Liability Insurance is essential regardless of your company’s size.

Regardless of your company’s size, employee lawsuits are much more than just an inconvenience. Employee-related claims are an expensive distraction for your management team. In the face of the reality that employee lawsuits are becoming much more common, PEO Employment Practices Liability Insurance has become a necessity for businesses large and small. Did you know that over the last 20 years, employee lawsuits have risen roughly 400%?  In the same period, wrongful termination suits have jumped up more than 260%.

The Safety Net of PEO Employment Practices Liability Insurance

In 2017, you are more likely to be sued by an employee than to have a fire at your facility. Yes, you could need PEO Employment Practices Liability Insurance more than you need a fire department. Although your offices won’t burn to the ground, the financial damage of employee lawsuits can be extreme. On the average, the cost of settling and employee-related lawsuit out of court is over $75,000. Even worse, the average jury award if you decide to go to court and end up losing is over $217,000. Ultimately, the average total of an employment claim’s expense, including settlement, compensatory award and defense cost, comes out to more than a quarter of a million dollars without EPLI coverage. When it comes to a small to mid-sized business, six figures in financial damage can be fatal even in a profitable year. Without PEO Employment Practices Liability Insurance, such financial hits end up closing the doors of many once prosperous business entities.

Additionally, the threat is much greater than any employer would naturally expect. Indeed, when it comes to case law in regards to employee rights to equal opportunity and treatment in a workplace, the definition is broad. Such case law extends to every step of the employment process from recruitment and hiring to promotion and termination. Moreover, the term “employee” applies to any past, present or potential hired personnel at a place of business. Any hired staff is considered to be an employee under these legal guidelines from payroll staff to independent contractors. Even a temporary employee that works for your company for a single day has the right to sue you for violation of legal rights as employees.

Ultimately, the price of not being protected against these lawsuits is much greater than the price of taking preventive measures. EPLI insurance has become one of the basic costs of doing business in the 21st century.  PEO Employment Practices Liability Insurance can help protect and provide your business with legal defense aid and financial coverage in employment lawsuit claims.

PEO Employment Practices Liability Insurance vs. EPLI Insurance

Although EPLI insurance can be acquired on your own, it makes so much more financial sense to embrace the PEO Employment Practices Liability Insurance model. By working with a professional employer organization like Total HR Management, you can access EPLI insurance with coverage ranging from $1 to $2 million. PEO Employment Practices Liability Insurance also comes with many other tailor-made service options that can help your company. Such relevant service options include recruitment and selection expertise, background checks to reduce risks of future employment lawsuits, and educational training support for managers and employers on how to handle correctly difficult employee situations.

Most importantly, PEO Employment Practices Liability Insurance offers the advantage of a professional employer organization’s large employee pool to improve rates and lower costs. The price of EPLI insurance is rated accordingly to a company’s size and expected lawsuit risk. PEOs also can reduce this risk by providing a broad, yet comprehensive range of HR functions, including writing employee handbooks, providing anti-harassment and anti-discrimination training to help decrease chances of employment lawsuit claims. Insurance companies understand that a business that has employed a PEO to manage its human resource duties will have better HR administration. As a result, insurance companies are much more likely to provide EPLI coverage for PEOs at a much lower rate.

A Win-Win EPLI Outcome with Total HR Management

Total HR Management offers a win-win EPLI outcome for our client companies. By working with us, we help your company to lower costs while safeguarding the future of your business. To learn more about the PEO Employment Practices Liability Insurance service options offered by Total HR, please call us 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.

The Profitable Positives of a PEO Co-Employment Relationship

As a small to mid-sized business owners, do you understand the pros of a PEO co-employment relationship? Many capable entrepreneurs do not recognize how profitable a PEO co-employment relationship can be for their company. At Total HR Management, we believe in removing the fears and highlighting the positives.

As a professional employer organization, we have extensive experience making this happen. When we sit down with business owners and outline how we can tailor our PEO services to suit their companies, it’s amazing to see how quickly reluctance transforms into a proactive handshake that signals a profitable future.

PEO Co-Employment Relationship Does Not Equal Less Control

For many small to mid-sized business owners who are used to having their hands in every aspect of the business, accepting a PEO co-employment relationship is difficult. They falsely believe that co-employment means relinquishing control of their company. In truth, however, the exact opposite outcome tends to be the case.

PEO co-employment relationship

Profitable PEO Co-Employment Relationship

Indeed, ceding control of human resources management in a PEO co-employment relationship can be a challenging adjustment to make. Once this step is taken, the freedom provided often proves truly valuable to many business owners. Suddenly, they can work on the business of their business and not in the bureaucracy of their business. A true PEO partner like Total HR Management acts virtually like an extension of a company’s business. The profitable pro of a PEO co-employment relationship is that the PEO handles the time-consuming tasks while the business owners and the executives focus on what matters.

For example, outlined quickly below are five profitable pros of a PEO co-employment relationship. A PEO co-employment relationship allows your business to succeed by offering advantages that make sense.

4 Pros of a PEO Co-employment Relationship

1) Better Benefits For Employees

A PEO co-employment relationship allows a small to mid-sized business to offer a better benefits package to their employees. By becoming part of the pool of a PEO’s client companies, a small to mid-sized business obtains the negotiating strength of a large corporation. As a result, the benefits package options provided are much more extensive and better, ranging from health and retirement to workers’ compensation and insurance costs.

2) Regulatory Compliance

A PEO co-employment relationship removes the burden of having to keep up with the constantly changing human resources regulatory laws. From producing employee handbooks to helping a business understand the challenges of modern healthcare reform, a PEO supports their client companies and ensures ongoing regulatory compliance.

3) Recruitment and Talent Acquisition

A PEO co-employment relationship improves recruitment and selection by providing professional staffing capabilities to a small to mid-sized business. From initial recruitment filtering of candidates to find the best talent for an essential position, a professional employer organization knows how to turn this business challenge into a successful reality.

4) EPLI Coverage

A PEO co-employment relationship often provides civil defense and employment liability insurance in case a former employee sues the company for discrimination or wrongful termination. Such EPLI coverage is a needed benefit for small to mid-sized business owners because of the cost of a potential lawsuit. The key is to help avoid any such difficulties.

Total HR Management Can Help

If you want to learn more about the profitable pros of a PEO co-employment relationship, please contact Total HR Management today. Please call (800) 975-5128 today to speak with an HR professional and access the help your small to mid-sized company needs.


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 another professional legal services provider.

Eleven Compliance Issues And Workplace Challenges That Show Why Your Company Should Work With A PEO (An Introduction)


Challenges of 21st Century Workplace

Total HR Management is starting a series of blogs about the 11 compliance issues and workplace challenges that show in detail why your company should work with a PEO. The goal of working with a professional employer organization is to take the human resources and administrative pressure off of your back. Total HR wants you to be able to do what you do best: Work on the productivity and profitability of your business and not in the labyrinthine bureaucracy of your company.

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Five Reasons Why HR Outsourcing Makes Sense For Your Company

There are definitive reasons why HR outsourcing is chosen by so many small to mid-sized companies in today’s business environment. Rather than hear why Total HR Management believes your company should embrace the HR outsourcing PEO model, it makes sense to hear it from other business owners. After all, their business concerns and the challenges they have faced within their companies are a decent reflection of your own.

hr outsourcing

HR Outsourcing & Your Company

Helping Your Company

The Society for Human Resources Management (SHRM) conducted a survey of hundreds of companies about human resources management and HR outsourcing. You will see that what they discovered makes a lot of sense. Total HR Management want the opportunity to convince your executive team that HR outsourcing can save your company time and money.

Below are the five top reasons that companies outsource their human resources to a company like Total HR Management.

5 Principal Reasons To Choose HR Outsourcing

  1. 26% of companies outsource to save money, and this makes a lot of sense as well. What company doesn’t want to cut costs and increase profits by taking on a service that works?
  2. 23% of companies outsource to focus on strategy and business planning. Total HR Management helps our clients work on their business and not get lost in the administrative tasks of their business. Isn’t working on your business and for your clients the actual process that increases your profit margin?
  3. 22% of companies outsource to ensure compliance issues are covered. Since it is increasingly risky to not meet both state and federal requirements when it comes to compliance challenges across the board, outsourcing this risk is a smart choice that can help you avoid costly business headaches in the future.
  4. 18% of companies outsource to improve accuracy with payroll processing and benefits administration. By having a professional employer organization handle these HR functions, you no longer need to worry about all those distracting details.
  5. 18% of companies outsource due to a lack of experience in-house and a reluctance to pay the salary of a full-time HR manager. If you know your weaknesses, then you can optimize your strengths. Total HR Management knows you are the best at running your business. A big part of running a business is knowing when to hand off tasks that get in the way of the business of that business. Why allow the bureaucratic work, where you lack a necessary expertise, to consume tons of time.

HR Outsourcing Makes Sense

As a professional employer organization and human resources outsourcing company, Total HR Management’s number one goal is to help our clients succeed. You need to avoid compliance issues, and we help accomplish that objective. You need to keep your employees happy and productive, and we provide the benefits administration and clear employee handbooks to make that a reality. You need to make sure your company is safe from lawsuits, and we help by providing the protection of EPLI administration.

Total HR Management Can Help

When you need help, we are a phone call away. Your dedicated HR manager will learn about your business, listen to your concerns and address your company’s needs. Such a high-level of service is why so many are embracing HR outsourcing in the 21st century. Please contact Total HR Management today to learn why a PEO or HR outsourcing makes sense for your company.

California Is One Of The Top 5 Riskiest States for Employee Lawsuits

When the top 5 riskiest states for Employee Lawsuits were listed, Total HR Management was not surprised to find California near the top. As a PEO providing human resources outsourcing services to our clients, we highly recommend EPLI to be one of the options chosen. In fact, given the risk involved, every company should have EPLI insurance to protect them from employee lawsuits.

The article explains in detail that, “According to the study, on average, a U.S.-based business with at least 10 employees has a 12.5 percent chance of having an employment liability charge filed against it. However, businesses in several states face a much higher level of exposure to litigation” and one of those states is California.  To learn more about how Total HR can help you with Employee Practices Liability Insurance, please call (800) 975-5128.

via Top 5 Riskiest States for Employee Lawsuits


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