Business Line Insurance
Legislation such as the Family Medical Leave Act and the Americans With Disabilities Act, plus a growing number of job-related lawsuits and claims, have created the need for business owners to consider a type of insurance known as employment practices liability insurance, or EPLI. An EPLI policy offers insurance protection against claims and lawsuits that are brought against a business, its officers or directors, or its employees and managers. These policies generally cover charges in the following areas:
- - Gender, age and other types of discrimination
- - Sexual harassment
- - Wrongful termination or discipline
- - Negligent compensation, promotion or hiring decisions
- - Breach of contract for employment
- - Emotional distress or mental anguish
- - Invasion of privacy
- - Libel or slander
- - Employee benefits mismanagement
While some directors’ and officers’ insurance policies contain employment practices liability insurance coverage, such coverage can be limited to directors and officers, and may have greater exclusions than a standalone EPLI policy.
Fortunately, although risks to businesses have never been higher, the costs for acquiring Employment Practices Liability Insurance have dropped significantly. With many A-rated and A+-rated companies in the business of EPLI insurance, premiums and deductibles are much lower than they were even five years ago. Pricing varies greatly depending on various factors (some listed below), but companies can expect annual premiums to fall in the range of $500 to $5,000 for companies with 5 to 20 employees. For larger companies, minimum premiums may begin as high as $15,000 and go up from there depending on many factors.