South Dakota has 210,534 people that are employed by small businesses. If you need staff to run your operation, then employment practices liability insurance can help cover your company.
An independent insurance agent has access to several carriers so that you have the best options around. They can find a policy and price that fits your budget. Get connected with a local expert for custom quotes.
What Is Employment Practices Liability Insurance?
Most South Dakota small businesses won't have the cash flow to pay for a claim out of pocket. If you have a team, you'll need to consider all that could go wrong and how to protect your company. 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 In South Dakota?
In South Dakota, $2,227,477,000 in commercial insurance claims were paid in 2019 alone. As a business owner with employees, it's important to have the right protection in place. 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?
Commercial insurance will cover specific items, and anything outside of those perils will not be covered. Every policy, from your professional liability to your workers' compensation insurance, comes with some form of exclusions that should be considered. Check out what losses a South Dakota 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.
Employment Practices Liability Insurance Cost In South Dakota
Whether you have commercial auto or general liability coverage, your insurance costs will vary. Each policy has its own unique pricing base on your personal information and data. In South Dakota, 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
Employment Practices Liability Insurance Third-Party Coverage
Third-party EPLI can be added to your EPLI coverage. At times, it is necessary to have coverage for other parties that could file a claim against your business for discrimination. 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.
How to Work with a South Dakota Independent Agent
In South Dakota, there are several policy options for your business. If you have employees, you'll need different coverages than if you don't. Employment practices liability insurance can save you a lot of financial distress.
An independent insurance agent can help you find a policy for a fair price. They do the shopping at zero cost with several carriers so that you're always getting the best deal. Connect with a local expert on TrustedChoice to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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