Employment Practices Liability Insurance (ELPI) Can Benefit Your Business

Quality Business Solutions provides comprehensive Employment Practices Liability Insurance (EPLI) coverage for claims arising out of employment related situations which provides valuable protection for our clients.

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance provides protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations.

How can this help protect my business?

In today’s environment, this coverage is critical for any business, especially if you have employees working with the public or onsite at other businesses. This coverage can also protect your business from meritless claims brought by disgruntled employees. Although business owners consistently strive for fair and non-discriminatory treatment of all employees, misunderstandings and quick decisions sometimes lead to miscommunication. EPLI coverage serves as a safety net or “last line of defense” against employment claims.

What does this coverage provide?

Limit of Liability

  • $ 1,000,000 Maximum Limit of Liability for each Claim
  • $ 1,000,000 Maximum Aggregate Limit of Liability for all Claims

Deductibles

  • Client Companies – $25,000

 

What is a Claim?

A “Claim” can be many things and is more than just a lawsuit. A claim can be:

  • the filing of a civil lawsuit or arbitration proceeding;
  • the filing of a criminal lawsuit or the institution of criminal proceedings;
  • an EEOC or DFEH proceeding or other similar federal, state or local administrative proceeding;
  • a written demand for monetary damages or non-monetary relief;
  • a written notice that one of your employees intends to hold you responsible for a Wrongful Employment Practice.

All claims are subject to the terms, conditions and exclusions of the EPLI policy in effect at the time of the claim during the co-employment relationship.

What assistance will I receive in preventing claims?

Quality Business Solutions HR Specialists are available to assist you with proactive solutions to defuse work-related issues that may give rise to claims. We provide services ranging from guidance on issues such as termination to handling a potential discrimination or harassment issue. Our HR Specialists will assist you in making the right decision on how to move forward. Quality Business Solutions will also help you stay in compliance with constantly changing government regulations and give you peace of mind that all of your HR requirements are being handled by professionals.

The cost for this type of coverage is minimal in comparison to what potentially could be imposed against a business for a violation.

QBS has offered this coverage over the past 8 years and has kept the cost below the industry standard. This cost is calculated and billed on your payroll invoice each payroll, and based on the gross payroll of each payroll. There are no deposits or audits, you pay based on actual payroll.

If you would like to add this coverage, all you need to do is notify you payroll representative and they can answer any questions you might have and see that the coverage is added.

If you have any additional questions on ELPI, please don’t hesitate to contact our office for more information.