Washington Employment Practices Liability Insurance
The number of claims related to employment are steadily on the increase. This means that the potential financial risk that companies face is also on the rise. The cost of defense against a claim of discrimination or wrongful termination, whether the ruling is guilty or not, the expense can be quite high. This is also the case for claims that are found to be fraudulent or groundless. The risk exposure for monetary awards could threaten the financial resources of even the strongest company if that company isn't protected by an Employment Practices Liability Insurance (or EPLI) policy.
Unfortunately, most companies mistakenly believe that their current Business Insurance will cover these employment-related claims. The fact is that the majority of comprehensive General Liability Insurance policies specifically do not include such claims. For small businesses, a limited amount of coverage may be offered through a directors and officers insurance policy. However, it is not likely to be enough coverage to protect the entire company.
EPL Insurance is disigned to protect you against this type of claim, which may include:
- Breach of contract
- Consortium loss
- Disputes over hours and wages
- Drug testing
- Emotional anguish
- Hiring negligence
- Mental suffering
- Privacy invasion
- Promotion negligence
- Retention negligence
- Sexual harassment
- Statute Violation
- Supervision negligence
- Wrongful termination
The best way to address this increasingly popular type of litigation and reduce the financial risk that your company has to face in relation to employment-related claims is with a quality Employment Practices Liability Insurance policy through Libke Insurance Associates Inc. Drawing on many years of industry experience, you will have access to a comprehensive insurance program that will help you to reduce the risk exposure for your company associated with employee claims.
Who Is At Risk?
The larger corporations out there will generally have a substantial EPLI policy effectively in place. These companies are prepared to take care of practically any employment-related lawsuit that comes their way.
On the other hand, the smaller companies, especially those that are new businesses, are usually the most vulnerable to this form of litigation. The reason for this is because the smaller and newer businesses typically do not have a legal department or even a company handbook that deals with the procedures and policies of disciplining, hiring or firing their employees.
Your company is put at risk for an employment-related claim as soon as a prospective employee walks in the door for their pre-hire interview. For instance, you may decide that the job candidate is simply not a good fit for your company at this time. Before you know it, that person's lawyer is calling you on the phone to let you know that you are being charged with some type of alleged discrimination.
Imagine that you do decide to hire the person that you interview. Unfortunately, you soon realize that due to a failure to show up for work as they should, you have to terminate this individual's employment with your company. All of a sudden you are opening a letter from a law firm that states the former employee is claiming wrongful termination.
Worth The Premium
The cost of EPL Insurance in Washington State for your company will be set according to a number of determining factors, including:
- The number of people employed by your company
- Any previous lawsuits against your company
- Employee turnover rate
- Establishment of proper practices and rules
Depending on the size of your organization, you may choose EPLI as an endorsement to your business Owners Policy. Otherwise, it may be best to choose a specified standalone policy. Your agent will evaluate your company and advise you on the best option for your particular situation.
This type of coverage is typically written on a claim by claim basis. This means that in order for a claim to be covered, the incident has to of taken place while your policy was active. Since claims from employees can come several months or years after the actual occurrence of an incident, you need to reduce your vulnerability by never allowing your coverage to lapse.
When you make the investment in WA EPL Insurance coverage, you can effectively decrease your chance of being targeted with an employee lawsuit. In addition to helping you choose the best policy, your agent will also review your company employment practices and recommend ways that you can reduce your risk even further.
Trouble can arise from your very first employee interview. Do not leave your company open to these costly claims. Take action right now before it is too late by simply clicking on the quote request button. The peace of mind that you need to run your company efficiently and focus on the important tasks to help your business grow and thrive is only a click away. Regardless of the size and type of your company, if you have employees, you are at risk. So, act now to protect the business that you have worked so hard to build.