Missouri has roughly 1,200,000 people employed by small business owners. When you have employees, there is even more risk. Employment practices liability insurance can help.
If you work with an independent insurance agent, you'll get the best rates and coverage in town. They work with several carriers so that you have options. Connect with a local adviser for quotes
What Is Employment Practices Liability Insurance?
Your Missouri business can obtain policies that protect you from legal disputes with staff members. There are many ways a worker can sue your company. The best way to have coverage for one of these events is to be proactive.
- 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, among others.
What Does Employment Practices Liability Insurance Cover?
In Missouri, the wrong coverage can mean the difference between whether or not a claim is paid. Court, settlement, and defense costs can add up quickly if you're uninsured. The right business insurance will help avoid any money coming out of pocket. 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?
It's critical to understand what could be a possibly declined claim on your commercial insurance policies. Each carrier will have its own set of rules, but standard ones apply no matter what. Check out the losses a Missouri EPLI 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.
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Employment Practices Liability Insurance Cost
Like your other commercial insurance policies, your costs will vary. Carriers use specific criteria when figuring your pricing. In Missouri, 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
Personal data and outside elements are taken into account when determining your expense. There are some items you can improve for a better rate. Quotes are necessary to get exact premiums.
Employment Practices Liability Insurance Third-Party Coverage
The majority of business owners are unfamiliar with third-party EPLI. Generally, it can help your business avoid financial disaster. Check out what it 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.
Your general liability policy will exclude third-party EPLI claims. Any claims arising out of harassment or discrimination will be voided on your regular general liability insurance. In order to get adequate protection for all the what-ifs, you'll need to endorse your EPLI to show third-party coverage.
How to Work with a Missouri Independent Agent
In Missouri, your business will live and die by proper insurance. If you are running a company that uses staff, you are at even greater risk. Employment practices liability insurance can save your business from financial ruin.
An independent insurance agent will work on your behalf so that you get the coverage you need for a fair price. They have access to several carriers, giving you the best options. Connect with a local expert on TrustedChoice in minutes.