06 Apr It’s Time to Think About EPLI Coverage
This is the darkest period we’ve seen for small businesses in decades. Depending on your industry, you’ve probably had some hard conversations about layoffs with your employees recently. If you’re sitting at home wondering what’s going to happen with your business when this pandemic is over, we’d like to offer some food for thought. Those conversations were likely just as difficult for your employees, and you don’t necessarily know whether or how they might retaliate. Tensions are high and fingers are being pointed every which way. At any time, but especially during times of change and upheaval, it’s important for your business to carry EPLI.
EPLI (employment practices liability insurance) put simply, covers your costs if an employee sues you. It’s a common misconception that your workers’ compensation would cover this, but unfortunately, that isn’t the case. Some people’s workers’ compensation does cover employee lawsuits, but those policies have EPLI attached. That’s usually how a business purchases EPLI coverage— by adding it as an endorsement to their workers’ compensation policy.
Some of the most common EPLI cases deal with employment discrimination, sexual harassment or wrongful termination, but EPLI covers any situation where an employee feels that their employer violated their legal rights. Even if you win the suit, legal fees for these types of claims can cost tens of thousands of dollars. EPLI is really an essential coverage for any business that hires people outside of their immediate family.
We know you value your people. You treat them fairly and have faith that they would never sue you. That’s how North Carolinians are. You can’t imagine one of your employees being so angry that they’d file a lawsuit against you. Few people in small businesses think it can happen to them, but believe us, it happens more frequently than you might think. And usually, it’s because of a simple misunderstanding or miscommunication rather than any ill intent on either side. Even the best employers can end up with employees who feel they’ve been mistreated.
The bottom line is that, regardless of the reason it was filed, you don’t want to leave yourself susceptible to paying out of pocket for any type of employee lawsuit. Call us at 704-821-4460 or connect with us on Twitter, Facebook, Instagram, YouTube, LinkedIn or Pinterest so we can talk to you about protecting your business.