If you're like most D.C.s, you have a great working relationship with your staff. It's hard to believe that any of them would ever sue you.
by James West in Business Insurance on Tuesday, March 7, 2017
But, all it takes is one comment or action—however unintentional—for an employee to file a complaint or lawsuit, claiming his or her legal rights have been violated. (For common claim examples, see Part 1 and Part 2.)
Think about how many decisions you make every day that affect your staff ... decisions about hiring, job responsibilities, pay, promotions, and termination, just to name a few. If any of these processes is handled incorrectly, it could result in an expensive lawsuit ... one that may drag on for years.
An Easy Solution
Thankfully, there's a solution to help manage your risk – Employment Practices Liability Insurance (EPLI). EPLI can protect your practice from many types of employee lawsuits, such as:
- Discrimination;
- Sexual harrassment;
- Wrongful termination;
- Breach of contract;
- Wrongful discipline;
- And more.
An EPLI policy can be part of a Business Owners' Policy or standalone coverage. It generally covers the cost of defending a lawsuit in court, as well as judgments or settlements up to the chosen limit. Legal costs are covered, regardless of whether your practice wins. EPLI policies usually do not pay punitive damages or civil or criminal fines.
Essential Coverage at an Affordable Cost
You may think coverage that can save you so much money would cost a lot ... that's not necessarily the case. EPLI coverage can cost as little as $50 per employee, per year, for minimal coverage amounts when bundled with a Business Owners' Policy.
Now, while you're thinking about it, is the time to learn more about Employment Practices Liability Insurance. NCMIC Insurance Services can help. Call one of our agents at 1-800-769-2000, ext. 8180.
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Tags
- business insurance
- hiring staff
- insurance
- insurance agent
- personal insurance
- staff
About the Author
James West
James West, CIC, FLMI, vice president of insurance agency services, NCMIC Insurance Services, has more than 20 years of insurance experience in sales, operations and distribution channel management with agencies and insurance carriers. In his current position, he is responsible for the overall growth of the insurance agency, with primary emphasis on commercial insurance accounts. James is also an adjunct professor for a local university in Des Moines. He holds a Master of Business Administration degree from the University of Iowa and a Bachelor of Science degree in Business Management from Upper Iowa University.
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