Kentucky has roughly 702,054 people employed by small business owners. When you run a company, you'll need to have coverage for all the what-ifs. That includes employment practices liability insurance.
An independent insurance agent can help you navigate the policy options for your operation. They work with several carriers, so you don't have to. Connect with a local expert for customized quotes.
What Is Employment Practices Liability Insurance?
In Kentucky, your business can have certain coverages that will protect you from a claim reported by an employee. Employment practices liability, also known as EPLI, will help pay 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?
Your Kentucky business may not be able to sustain a lengthy legal battle without the proper commercial coverage. EPLI will help pay for your court, settlement, and defense costs. 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 Does Employment Practices Liability Insurance Not Cover?
If your company violates an industry-standard guideline from OSHA, a claim will be voided. The safer and more proactive your business is run, the better chance you have at avoiding lawsuits. As with any commercial insurance policy, there are exclusions.
When there is a data breach, EPLI will not cover any damages that arise from stolen employee information. A cyber liability policy may provide some coverage as an alternative. There will be exclusions for punitive damages or criminal act losses as well.
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Employment Practices Liability Insurance Cost
Carriers use personal data and outside elements to figure your costs. Like any other business insurance you own, pricing is customized to your specifics. In Kentucky, 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 hirings
- How you deal with termination
- Prior claims reported
The personal data that is used can be improved for better prices. While you won't have control over outside factors, you can take action on the items within your reach. Your policy will have to be quoted in order to get exact costs.
Employment Practices Liability Insurance Third-Party Coverage
For your Kentucky operation to be fully protected, you'll need to account for all the what-ifs. Most business owners have not heard of third-party EPLI. Ultimately, it can help your business avoid financial distress. 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.
Certain claims made by non-employees such as third parties will not be included under your general liability policy. In fact, your business policies exclude claims arising from harassment or discrimination. If you want coverage, you'll need to add EPLI.
How to Work with a Kentucky Independent Agent
In Kentucky, your business insurance is essential to running a smooth operation. If you have employees, EPLI coverage is necessary. Instead of going at it alone, consider working with a licensed professional.
An independent insurance agent can help your business obtain the right coverage for a fraction of the price. They have access to several carriers, giving you options. Connect with a local expert on TrustedChoice.com for tailored quotes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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