Florida has 2,500,000 small business owners. With 3,400,000 people employed by them. If you run an operation here, you may want employment practices liability insurance.
There are several ways your company could be at risk when you obtain staff. An independent insurance agent can help you navigate all the coverage your business needs. Connect with a local expert for tailored insurance options.
What Is Employment Practices Liability Insurance?
Employment practices liability, known as EPLI, will provide coverage for lawsuits arising out of employee-related claims. This could be from workplace discrimination to sexual harassment and everything in between. It protects your company's finances and pays for legal fees and settlement costs.
What Does Employment Practices Liability Insurance Cover?
Your EPLI is key to avoiding workplace losses. Just like your other employee-related policies, such as workers' compensation insurance, you're responsible for an incident. One wrong hire or termination could result in a massive legal battle for your Florida company. EPLI provides coverage for legal costs arising from the following claims.
- Sexual harassment
- Wrongful termination
- Breach of an employment contract
- Violation of local and federal employment laws
- Infliction of emotional distress or mental anguish
- Failure to employ or promote
- Wrongful discipline or demotion
- Mismanagement of employee benefits
- Defamation of character
- Privacy violations
What Does Employment Practices Liability Insurance Not Cover?
While your Florida EPLI covers several areas of risk, there are still exclusions. If you violate any industry standards such as OSHA, a claim would be void. That's why it is so essential to have proper workplace practices from the beginning.
EPLI will not cover punitive damages or criminal act claims. Privacy violations caused by a data breach won't be covered under your EPLI as well. These claims can be avoided with solid employment practices in place. Your commercial insurance will keep your business running — the proper protection is key.
Employment Practices Liability Insurance Cost
Like all your other business policies, the cost of insurance will vary. It is dependent on numerous items. Carriers use personal data and outside elements to determine the price of your policy. In Florida, employment practices liability premiums are rated on the following factors.
- Your experience level
- The safety practices you have in place
- If you have a human resources department
- How you deal with hiring
- How you deal with termination
- Prior claims reported
While you won't know your exact pricing without a quote, you can at least understand how they rate your policy. Some carriers will have other items they look for when obtaining information. Remember to get proposals from multiple markets to ensure you're receiving the best premium.
Employment Practices Liability Insurance Third-Party Coverage
As a Florida business owner, you may not have heard of third-party employment practices liability coverage. This is why connecting with a knowledgeable professional is so important. Your business could get sued for numerous exposures. Adequate protection is necessary to ensure you are covering the most risk. Check out third-party employment practices liability.
- Third-party employment practices liability coverage: This is a separate insuring agreement within employment practices liability insurance (EPLI). It covers liability claims brought by non-employees against employees of your business.
Claims by non-employees are not covered under your other business policies. Your general liability insurance will specifically exclude coverage for harassment and discrimination. Review your EPLI for insurance options.
How to Work with a Florida Independent Agent
When you're searching for employment practices liability insurance, a trusted adviser can help. Sometimes you don't know what you don't know. In Florida, your business could get sued by a variety of occurrences. The right coverage is essential to protecting your company.
Fortunately, an independent insurance agent can help. They work with several carriers bringing you the best options on policy and premium. Get connected with a local expert on TrustedChoice.com today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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