Why Your Small Business Needs Employment Practices Liability Insurance

Why Your Small Business Needs Employment Practices Liability Insurance


If you are a small business owner, chances
are you will face an employment claim. Having even one employee puts you at risk for being
sued. Over ninety-nine thousand employment practices
liability charges were filed with the EEOC in 2011, which is a record high. Over three-hundred and sixty-four million
dollars was paid out in settlements in 2011, another record high. Most of these claims settled for between twenty-seven
and fifty thousand dollars, amounts that will significantly impact your bottom line and
could even spell disaster for your business. Here’s some examples: A small gift and flower shop owner was sued
for pregnancy and gender discrimination when the claimant alleged that the employer repeatedly
treated her differently as a result of her gender and condition. The claimant provided
several fellow employees who attested to the treatment by the employer. A small retail store owner was sued for sexual
harrassment when the claimant alleged that the son of the owner, also an employee, made
inappropriate comments and gestures and solicited the claimant for sexual favors. A small restaurant owner let a middle-aged
employee go due to performance issues. The employee sued alleging age discrimination
because he was over the age of forty and many other employees still employed were younger
than forty. I’m R.J. Coleman with the Central Insurance
Company Claims Department. Employment claims are a serious risk and more than half are
directed at small businesses. Protect yourself and your business with Employment Practices
Liability Insurance. EPLI can provide protection against lawsuits
stemming from harrassment, including sexual harrassment, discrimination and wrongful termination. Benefits of Employment Practices Liability
Insurance include affordable coverage, access to an online loss prevention website, specialized
claims services, and access to experienced legal representation through a legal advice
helpline. Don’t risk facing an employment claim on your
own. Ask your agent about adding the EPLI endorsement to your business policy.

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