If there’s one thing that all business owners have in common, it’s the desire to protect their enterprise from legal claims and lawsuits. One of the best ways to do this? Invest in employment practices liability insurance, or EPL for short. This specialized form of insurance provides unparalleled protection to businesses that may be targeted by lawsuits related to employment law. Read on to learn more about why EPL should be an essential part of any business’s risk management strategy.
1. Understanding EPL Insurance: The Ultimate Legal Protection
EPL insurance is designed to safeguard businesses from the financial and reputational damage caused by discrimination and wrongful termination claims. Here are some ways EPL insurance provides ultimate legal protection:
- It covers the expenses of court proceedings, such as lawyers’ fees and court costs.
- It pays settlement costs, should an employee’s case be successful.
- It protects companies from the financial risks involved with defending a wrongful termination claim.
EPL insurance also offers reputational protection. The right policy will cover the communication costs of responding to bad press, as well as the cost of maintaining a strong corporate reputation in light of employment-related scandals. This includes costs related to issuing press releases and damage control campaigns. EPL insurance helps organizations stay afloat by enabling them to invest in proactive measures to protect their reputation, rather than resort to reactive strategies.
2. Why Employers Should Invest in EPL Insurance
As an employer, you have a duty of care to your staff, ensuring there is an environment which allows them to reach their highest potential. Investing in an employer protection liability (EPL) insurance plan is one way to protect your team and business from the risks of employment litigation. Here’s why:
- Peace of Mind: Having an EPL insurance policy in place means, no matter what kind of difficult personnel issue arises, you will have experienced legal advice there to guide you. This brings comfort to both employer and employee.
- Multi-Layered Protection: An EPL policy gives you coverage of actual or alleged violations of Title VII, ADA, ADEA, Equal Pay Act, WARN and many state statutory requirements too. Having a policy that covers all the required legal standards means you can focus on running your business.
As an employer, investing in an EPL policy is a wise decision. Not only is it likely to protect your business from legal action, but it can also prevent costly reputational damage. EPL insurance can make a big difference to your team, giving them the confidence that you are doing everything you can to keep them safe.
3.Navigating the Benefits of EPL Insurance
Are you looking to navigate the benefits of large employers’ Professional Liability Insurance (EPLI)? Here is what you need to know.
- Know Your Coverage
Your EPLI coverage may extend coverage to any legal woes that stem from the employer-employee relationship. That said, the scope of such coverage may differ depending on the insurance policy purchased. Thus, it is important to read, understand and review your policy carefully to make sure the coverage is pertinent to your business.
- Record Keeping and Documentation
Ensure you are properly equipped to handle employee litigation cases. Keep accurate records of your employees’ performance reviews, disciplinary actions, and other data that could be vital in employer/employee disputes. Keep these documents on file in a secure depot for easy retrieval during legal proceedings.
4.Making Your Business Shielded from Legal Headaches
Having Professional Legal Advice
Not all business owners are legal minds, so an experienced lawyer to guide you through the complexities of the law and anticipated problems is key to protecting your business. They can help to outline any regulations you need to comply with, as well as advise how to protect your intellectual property and liabilities. Professional legal advice doesn’t just take the strain off your shoulders, it could also help your business to avoid costly fees.
Being Mindful of Regulations
From data protection and consumer rights, to fire safety laws, there are a range of regulations you should be mindful of when running a business. Staying up-to-date on area-specific requirements and ensuring you have all the necessary licences and permits can help to protect your business from legal pitfalls. To be really sure you’ve done your due diligence, consider using an audit document to systematically check all of your legal obligations with regards to your business.
When it comes to protecting your business, EPL insurance is an invaluable safeguard against the costly risks of facing potential employment disputes. Don’t put your business at risk–consider investing in EPL insurance, for the peace of mind and security it provides.