Most small business owners are well acquainted with a number of kinds of insurance and understand their necessity. Suppose a customer doesn’t see that patch of ice at the front door and breaks an ankle. That is why no reasonable business owners would dare be without general liability coverage. If an employee is hit by a falling crate and injured, workers compensation is an expected safety net for both the employee and employer. But what happens when something occurs in a business that isn’t quite so tangible but potentially equally financially devastating? What happens when an employer is accused of sexual harassment and taken to court, or a key employ is alleged to have defrauded the company or company’s shareholders? Both are real world examples of why more and more small businesses are adding Employment Practices Liability Coverage to their insurance coverage package.
Employment Practices Liability Coverage includes protection against financial liabilities such as:
- Wrongful Termination
- Wrongful Discipline
- Sexual Harassment
- Claims of Retaliation
- Discrimination Suits
More recently, small business owners have been also adding D&O coverage (Directors and Officers coverage) along with Employment Practices Liability Insurance coverage for that extra level of protection. D&O coverage has been used for sometime by larger companies and corporations to insure their officers and directors against financial liability claims of wrongful acts specifically committed by their directors and officers. Individuals often covered include CEOs, CFOs, elected board directors, and other elected officials of the company. But the rise in small businesses using this coverage has been growing as the potential risk has been rising.
It is generally is good practice to have Employment Practices Liability Coverage for your business. You can always ask a BOLT insurance representative about the necessity of having a combination of the two and to get examples of situations specific to your unique business and why it would make sense to have both.