Okay, so you’re ready for business insurance to protect your company against risks. You’ve done the research, know you’re looking for the lowest cost, and head to your local agency to start the process. The agent starts talking about add-on features that can really help protect your company. You didn’t realize all of the options available and start second-guessing your basic coverage!
The lowest cost option, while fiscally attractive, is not always the best policy for your business needs. At The Yurconic Agency, we take the time to get to know you and your business so we can help determine your potential risks and offer suggestions for complete coverage. Sometimes this may include EPLI, or Employment Practices Liability Insurance.
What is EPLI?
EPLI protects your business from legal action from employees for things like harassment and discrimination. This includes past and present employees, as well as those you’ve interviewed but did not get the job. These claims can be costly between legal fees and settlements. An EPLI policy helps cover some of these costs whether you win or lose the lawsuit. However, the amount of coverage can depend on the limit you purchase in your policy.
What Factors Should I Keep In Mind?
The basic coverage for a small business EPLI is $50,000 – $100,000, but there are certain factors that you must take into consideration before settling for the cheapest. Firstly, consider at least $10,000 for legal fees. Next, look at the salary of your employees. If it’s higher, you may need a higher limit to cover any wages lost. The size and location of your company are also factors considering that the more employees you have the higher chance a lawsuit can occur. Additionally, different states have different laws on these suits as well as the average cost of an attorney. The type of business you work in can affect claims if in a high-pressure industry due to employees seeking distress claims. Finally, hot-topic issues in the news such as sexual harassment and gender claims can spark internal suits to be filed as well as keeping in mind the recent inflation costs in all factors including legal fees.
How Much Coverage Should I Get?
After taking the above factors into consideration, you may be considering a higher limit on your EPLI policy. You can choose different limits such as up to $250,000 or even $1 million. At The Yurconic Agency, we can sit down and help you determine what limit would best suit your needs in this ever-growing economy in order to further protect your business. Get in touch now to get started.