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Businesses beware!

Fired With the economy struggling, we could see an increase in lawsuits. It seems that every time I pick up the newspaper or turn on the news,  I am reading or hearing about a company that is laying off. I am sure many of you can relate to this and some may even know a friend or family member that has been laid off recently.

So what do layoffs have to do with insurance? 

I know I have mentioned it in the past, but in recent light of our economic situation, I feel it is worthy to discuss again. Lawsuits are expensive to defend, so what can a business owner do?

Well, for one they can be properly insured. In order to defend you against a lawsuit from a previous employee, you must have an Employment Practices Liability Insurance policy.

EPLI is a coverage that can be added to your current policy or purchased separately.

EPLI provides protection against many kinds of employee lawsuits, including claims of:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

Having this type of coverage can be invaluable to a business owner since it is predicted to only get worse.

Lawsuits are increasing all over the country for an array of different reasons.  When the economy is weak, people become anxious about money and it increases their motivation to seek compensation from other sources. Of course, attorneys are right there - fueling the fire so to speak - and unfortunately businesses are attractive targets to these audiences.

So when you are reviewing your insurance, try to be more focused on coverage first rather than the price you pay for it. It could cost you a lot more if you don’t have the right insurance in place should you need it.

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