Over the past decades, the number of lawsuits filed by employees against their employers has increased steadily. Even though big corporations have more suits brought against them, small businesses are not immune to the threat. If your Scottsdale business employs workers, you should strongly consider adding an Employment Practices Liability Insurance.
How much the insurance coverage will end up costing you depends on several factors. For example, if you had a lawsuit filed against you in the past, coverage probably will end up costing you more. But the type of business you run, as well as the number of workers you employ factors into your insurance rate. In the end, you have to ask yourself, if someone was to file suit against you over your employment practices, could you and your company survive financially, if you end up having to pay a settlement or fine? EPLI also covers legal fees, regardless of whether you win or lose.
In order to determine if you need EPLI coverage or not, it is important to understand what it covers. In essence, EPLI covers your Scottsdale business if an alleged claim is brought against your business. This claim will state that the legal rights of your business’s workers or employees have been violated. A violation of legal rights can be any of the following:
- Wrongful Termination
- Sexual Harassment
- Negligent Evaluation
- Breach of Employment Contract
- Wrongful Discipline
- Failure to Employ or Promote
- Mismanagement of Employee Benefits
- Wrongful Infliction of Emotional Distress
- Deprivation of Career Opportunity
Your Smart Move Insurance specialists are happy to discuss appropriate coverage with you for your Scottsdale business. We can assist you in determining if you need EPLI coverage or not. The fact that EPLI has become one of the fastest-growing products of the insurance market, shows its efficiency and effectiveness. As with most other professional liability insurance coverages EPLI only covers your legal expenses if you have had coverage for your Scottsdale business while the incident took place AND when the claim was filed.
Contact our office today to review your current commercial insurance coverage and to determine if Scottsdale Employment Practices Liability Insurance policy is beneficial to your business.