In today's ever-changing world, it is crucial for businesses to prioritize the well-being of their employees, while at the same time protecting the business from potential legal lawsuits. One crucial aspect of risk management is having the proper insurance coverage. General Liability coverage is commonly understood, but most businesses do not realize that Employee Practice Liability (EPLI) is excluded under the General Liability policy. Many businesses think they are protected for EPLI with their existing General Liability, when in fact they are not.
EPLI should be considered a necessary coverage that is included in your insurance program. EPLI is a specialized form of coverage designed to protect businesses against claims made by current or former employees relating to employment practices. Such practices may include discrimination, harassment, wrongful termination, retaliation, or infringement of employee rights. EPLI covers legal costs, settlement payments, and judgments that result from these claims, providing financial protection to your business.
No matter how professional or well-intentioned an organization is, the potential for employment-related claims is always present. In an increasingly litigious society, employees are becoming more aware of their rights, leading to a rise in workplace-related lawsuits. EPLI shields employers from severe financial consequences when claims are made, covering legal expenses and settlements, even if the claims are ultimately found to be groundless.
By having EPLI in place, businesses demonstrate their commitment to safeguarding the rights and well-being of their employees. EPLI also protects a company's reputation by addressing legal matters discreetly. Publicly-aired lawsuits can cause significant damage to a business's reputation, resulting in potential loss of customers, investors, and talented employees.
Another benefit of EPLI coverage is that it provides access to legal experts in employment laws, who can offer guidance on compliance and help minimize the risk of future claims. This proactive approach has been found to save businesses valuable time, resources, and potential legal complications.
Investing in EPLI is an essential step for any organization/business concerned with safeguarding its employees' rights and protecting its own financial stability.
Kathleen Rapasadi is a seasoned professional with a wealth of experience in the insurance industry. Kathleen embarked on her journey in 2003, stepping into the realm of marketing as a Marketing Manager. In 2019, she advanced her career by joining Tompkins Insurance, where she currently serves as a commercial insurance account executive and Vice President.
Beyond her professional achievements, Kathleen is actively engaged in various organizations, showcasing her commitment to networking and growth. She has been a member of esteemed groups such as NAWBO Buffalo Niagara, Buffalo Niagara Sales & Marketing Executives, and Big I Western New York. Currently, she continues to contribute to NAWBO Buffalo Niagara.
