There are 1,200,000 people who work for small businesses in Indiana. If you own a company that has employees, there are specific coverages you'll need. Employment practices liability insurance will protect your business.
Fortunately, an independent insurance agent can help with policy and premium options. They have access to multiple carriers so that you can save big. Connect with a local expert for tailored quotes.
What Is Employment Practices Liability Insurance?
Any small business will have exposure. Some risks are bigger than others, but they all need protection. Unfortunately, most small business owners won't have the cash flow to pay for a claim out of pocket. When you have employees, it's necessary to think about what could happen. Check out the coverage that can help:
- Employment Practices Liability (EPLI): Pays for your legal defense when an employee files a lawsuit against you. This can be a claim due to discrimination or sexual harassment, and many others.
What Does Employment Practices Liability Insurance Cover?
There is a lot that could go wrong when you employ staff members. Similar to worker's compensation insurance, EPLI will protect you against the risks of hiring employees. Indiana EPLI provides coverage for legal expenses 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 Doesn't Employment Practices Liability Insurance Cover?
Your commercial insurance will cover particular perils. Anything outside of those exposures will not be insured. Sometimes a claim can be declined because of your negligence on the front end as well. Check out the losses an Indiana EPLI policy could deny:
- If your company violates an industry-standard guideline from OSHA, a claim will be voided.
- When there is a data breach, EPLI will not cover any damages that arise from stolen employee information.
- There will be exclusions for punitive damages or criminal act losses as well.
Employment Practices Liability Insurance Cost
The cost of insurance will vary no matter where you live. Like your other business insurance, your pricing is determined by specific factors. In Indiana, 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
You can improve certain personal factors to get better premiums. If you bundle all of your business policies together, such as commercial auto, general liability, and more, you'll get a discount. Carriers offer upwards of 30% in savings.
Employment Practices Liability Insurance Third-Party Coverage
Third-party EPLI can be endorsed on your policy to provide additional protection. Ultimately, it helps your business avoid a major financial setback. Check out what third-party employment practices liability covers:
- 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.
Most insureds are not aware that their general liability policy won't insure losses unless they have EPLI. If a third-party discrimination lawsuit occurs, you won't be insured without third-party EPLI endorsed on your policy.
How to Work with an Indiana Independent Agent
In Indiana, there are several options on business insurance. From commercial auto to EPLI, you'll be able to select who you want to work through when obtaining coverage. The best way to get a valid policy for a low price is through a trusted adviser.
An independent insurance agent does the work on your behalf. They have access to multiple markets so that you have options and affordable premiums. Connect with a local expert on TrustedChoice in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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