Today we wanted to share an informational video that Travelers provided regarding Employment Practices Liability (EPL) Coverage. We’re going to highlight the key points and discuss why we think they are important, and why it is crucial to make sure you are covered in the event of a claim. These claims can include, but are not limited to, discrimination, wrongful termination, and harassment.
Why do you need coverage?
Insurance is a cost some people and companies don’t put as much thought into as they should. They simply think they’ll be fine. The unforeseen is usually lurking around the corner though and you could find yourself burdened with a claim or lawsuit. In this case, fine can turn into unfortunate very quickly. These issues are not something to fret about with the right insurance plan and coverage. If an employee feels they’ve been wrongfully terminated or discriminated against because of age or disability, you could have a costly problem introduced into your business.
Why does it matter?
Decisions require scrupulous attention because one wrong decision could affect the entirety of the company. Think about all of the important decisions that need to be made within a company mentioned in the video: hiring, firing, compensation, duties, promotions, work environment, and much more. Imagine the implications of hiring the wrong employees or firing ones who could feel discriminated against. Think about the effects of promotions and consider your work environment. Insurance matters so you can protect your company in these situations, especially because they could end up costing you in the end – both dollars and a reputation.
Who does it affect?
It goes without saying that these decisions will directly affect your employees, but they can also affect your company. Every decision you make can affect a portion of, if not all of, your employees. When claims arise, it can mentally and/or emotionally affect your employees. The video mentions decreased morale as an example, and notes important statistics regarding court cases. The result is not in the favor of uninsured companies, and they usually owe hundreds of thousands of dollars. Some cases can even cause companies to lose millions – is it worth it the risk of not being covered?
Insurance protects your company from the potential risks posed through the decisions you need to make regarding your employees. Contact us today to discuss your options so you can protect your business and employees. Don’t assume you’re safe; take action to ensure you are.