How Could I Protect My Business From Employee Lawsuits?

How Could I Protect My Business From Employee Lawsuits?

The majority of business owners have concerns over employee lawsuits. The concerns justifiably reflect the growing number of legal actions filed by employees for a wide range of alleged workplace violations. Employers also face lawsuits from former employees or job candidates who were not hired.

Both large and small businesses face lawsuit risks that can place significant strain on their operations and assets. EPL insurance coverage represents a proactive approach that could minimize or counter an employee lawsuit’s negative effects.

What Coverage Does EPL Insurance Provide?

Employment Practices Liability insurance provides coverage when employers face workers’ claims that a wrongful act or on-the-job misconduct occurred. While most standard policies cover injuries or property damage incurred during the course of business, EPL policies cover employee claims such as allegations of sexual harassment, discrimination, or a failure to promote.

Whether a business successfully defends against an employee’s claim or loses in court, the legal fees can have a significant impact on maintaining the operation. An EPL policy, however, covers legal costs and reimburses a business for the amount of a judgment or settlement.

Could I Obtain a Policy Tailored to My Business’s Specific Needs?

EPL policies rarely come in “one-size-fits-all” formats. You can customize EPL insurance coverages to meet the unique needs and risk factors associated with your business and employee teams.

Both your business and your workforce benefit from an EPL policy. Your team can better focus on moving forward if and when allegations of wrongdoing arise.

Comments are closed.