What does EPLI Coverage Offer Employers?

Every business owner should know that they are at risk of being sued by their employees. It doesn’t matter if you run a large corporation or own a small company; the odds are good that your employees will sue you for something. If you want to protect yourself against this type of litigation, it’s essential to understand what EPLI coverage offers employers and how it can help keep your business protected.

1. Keeps You Protected Against Lawsuits

EPLI coverage will help protect your business from the financial loss that can come from an employee suing you. The effects of this type of lawsuit can be devastating to small and large companies alike. If an employer loses a sexual harassment suit against them, they could end up losing hundreds of thousands or even millions of dollars. If an employee files a wrongful termination suit against their company, no telling how much money could be lost. EPLI coverage helps keep these types of lawsuits from becoming financially crippling for employers by offering insurance protection to businesses that their employees sue.

2. Offers Protection For Claims Against All Employees

Another benefit of having EPLI insurance is that it will protect your business from lawsuits made against all employees. If you have an employee accused of breaking the law, whether they are convicted for this crime or not, their actions can result in a lawsuit being filed against your business. This isn’t fair to employers because some workers commit criminal acts even though these crimes shouldn’t be associated with the company as a whole. As a way of ensuring that your business isn’t unfairly maligned after one of your employees commits a crime, it’s essential to look into employment practices liability insurance and find out more about what it offers. EPLI protects employees from lawsuits but it can also protect third-parties as along as the policy includes a provision for third-party protection.

3. Avoids High Insurance Premiums

Having coverage through the program can help keep costs manageable on several different fronts. With small businesses, paying for any employment liability insurance can be a financial strain. For large companies, premiums can rise significantly as the number of employees increases, and these costs can put smaller businesses out of business. Employment practices liability coverage helps employers avoid “pouring” money into their premiums by offering affordable and reasonable rates that help lower the overall cost you could have to pay if you didn’t have this type of insurance protection.

4. Helps Employers Avoid Costly Lawsuits

There are times when lawsuits brought against your company by an employee or former employee could become so costly that it threatens the future existence of your business. If you don’t want this to happen, your company must be covered by the insurance. Without this protection, your company could be exposed to lawsuits that you won’t be able to afford. Instead of worrying about the legal fees associated with these types of claims or losing everything you own because of a lawsuit, it’s best to look into getting coverage through employment practices liability program and make sure you are protected against these types of claims.

As you can see, having the insurance isn’t just something that benefits employers; it also helps the overall economy by keeping businesses healthier and more financially stable.

5. Your Employees Will Likely Be Covered

Another perk that comes with having employment practices liability coverage is that many of your employees will also be covered by your insurance policy. If you have an employee accused of sexual harassment, they could decide to file a claim against the company. If this happens, your insurance provider will likely hire an attorney to defend you in court while also hiring another attorney to represent the employee claiming they were sexually harassed while working for your company. This can help lower costs for employers because their attorneys work together to make sure all claims made against the business are handled and settled quickly and fairly.

6. Gives Employers A Sense Of Relief

Employees who work for small businesses are essential to owners of these companies, so it’s only natural that employers want to ensure their well-being. Without any EPLI insurance in place, employers can become overwhelmed when faced with lawsuits made by workers against them because of discrimination or other allegations against the business. Having this form of coverage helps put smaller employers at ease, knowing they have support from an insurance provider that will stand behind them and help get them through any claims filed, no matter what type of assistance is needed.

7. Can Be A Tax Write Off For Businesses Owned By Individuals

If you own a business on your own, purchasing the insurance can benefit your taxes. Suppose you file a claim against the company. In that case, there’s a good chance it will be considered a “personal expense” and not tax-deductible because an insurance provider paid for these costs to protect the business from being sued. However, suppose you pay for EPLI coverage on your own instead of having it charged to your business account. In that case, any claims made against the business could be considered a legitimate expense and one that can lower your tax bill by allowing you to write off these costs when filing next year.

EPLI is essential because it helps protect employees and their rights by giving them someone who will fight on their behalf when these claims are made. Many owners overlook the importance of this kind of coverage, but it can benefit both employers and employees.


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