You own a small business with only a few employees. Do you really need employment practices liability insurance? The answer is most likely yes. Called EPL for short, this is a vital coverage designed to protect your company from a variety of claims that can be made by employees. This coverage is important to any company as soon as the first employee is hired.
EPL insurance covers claims of wrongful termination, retaliation, discrimination, sexual harassment and other employment-related allegations. Many small businesses think that this type of coverage is only important to large companies. In reality, a small business could be completely wiped out by an employment-related lawsuit.
Many small businesses don’t purchase this coverage because they can’t believe one or two trusted employees would ever pursue a claim against them. That could be a costly mistake. Other businesses don’t purchase EPL coverage because they believe they are following all applicable employment rules. But consider this: Even if you haven’t done anything wrong, defending yourself against a lawsuit can be costly. EPL coverage can be the difference between surviving a lawsuit and having a lawsuit wipe out your business.