As a small business owner, you have a lot on your plate.
Among your myriad of tasks, you are periodically forced to make tough decisions about terminating an employee. As the door slams, the former employee may make his or her feelings known by muttering obscenities. This is not uncommon due to the emotional nature of your meeting, What can be cause for concern, however, is when the former employee begins questioning why he or she was fired and if the grounds for firing are substantial.
In this post, we’ll discuss a few risks your company faces with regard to its employment practices. We’ll also review how Employment Practices Liability Insurance can reduce risk for your business.
Employment Practices: Risks & Responsibilities
If the employer is forthcoming during the termination process and explains to the individual that he or she is not performing in the job effectively enough, the employer has the utmost right to terminate the employee. But, on the other hand, if the employee feels that he or she wasn’t let go because of underperforming, but instead of race, gender, etc., this is where having an EPLI policy will pay dividends for the business.
Employment Practices Liability Insurance, or EPLI for short, is a coverage that not many business owners are familiar with, but in today’s world, it’s becoming as important as paying the utility bill.
Protect Your Business from Lawsuit Damages
One of the biggest fears for business owners is being sued. It seems every time you turn on the news, there’s a new lawsuit being won or filed. These are almost glorified in the media. As a business owner, what would you do if you had a lawsuit come across your desk pertaining to unlawful termination of an employee because that individual was of a certain race?
For most business owners in that situation, they would begin to get very nervous; discrimination is one of the easiest lawsuits to win. Now, if that business owner being faced with the lawsuit had purchased an EPLI policy prior to terminating the employee, he or she might not be as worried.
Employment Practices Liability Insurance Indiana
EPLI, unlike most insurance policies, is only going to be utilized in the event that the employee and/or former employee files a lawsuit. The insurance carrier with whom the EPLI policy is written will cover, up to the limits of the policy, the legal and defense costs associated with a lawsuit that would come against the business and business owner.
It is safe to say that, as a business owner, you would undoubtedly be placing your business and livelihood at risk should you elect against having EPLI coverage. It only takes one disgruntled employee to unravel everything that a business owner has worked so hard to build.
Get a Free Quote on EPLI Insurance
If your company does not have an EPLI policy or would like to compare rates among multiple vendors, give the Kincaid team a call. We’ve helped hundreds of business owners like you in the greater Evansville area, including businesses in Indiana, Kentucky, and Illinois. Contact us today.Request a Free Quote