What if you as a business owner are accused of something by an employee or ex employee for something that you didn’t do? What if you are accused of sexual harassment? Or wrongful termination? Or discrimination? What if this disgruntled employee hires a lawyer?
According to a 2015 Hiscox study, 1 in 5 businesses of 500 employees or less, will face employment charges with an average cost to defend of $125,000. This would be a huge hit to any small business.
What can a business owner do to protect themselves agains claims like these? There is a coverage called EPLI (Employment Practices Liability Insurance), which covers claims alleging:
- Wrongful termination
- Discrimination
- Harassment (including sexual harassment)
- Retaliation
This is a coverage that may be included in your current general liability policy, or you can purchase one that is stand alone. In any case, it might be a good time to get with your agent to review your policy to make sure you are adequately covered. Listen to this episode for more details.
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Music by Roger Clyne and the Peacemakers
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