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	EPLI Insurance for Protecting You and Your Business

EPLI Insurance - Employment Practices Insurance is a liability policy to protect and safeguard your business and employees (as well as your 3rd party contractors) from lawsuits for supposed discrimination for sexual harassment, based on age, sex, gender, improper termination and disabilities. The coverage also deals with lawsuits filed against you under the ADA, American Disabilities Act.

The number of employment practice cases and the average award in CA, has gone up significantly in the last 10 years so it is advisable to take action.

The good news is you can buy economical quality insurance protection. The bad news is you are more liable to be involved in employment related claims and the risks are rising daily. The EPLI claim bandwagon and is on a roll. Every day somebody comes to know reads about an employee winning hefty compensation from an employment claim. As more employees win hefty awards more plaintiff attorneys look at employment claims as an excellent source of revenue. Hence more employees and plaintiff attorneys view employment claims as a source of earning revenue and file lawsuits against businesses, school boards, municipalities, non-profit organizations, clubs, and even the President of the US.

Any business or organization having employees should go for employment practices liability insurance (EPLI). An employee is any worker hired by your business either part time or full time. Businesses having 0-20 employees face the same risk of harassment as bigger businesses, but have a lower risk of labor and discrimination claims as they are outside the purview of certain federal guidelines. Businesses with 20-50 employees have a comparatively higher risk than companies with 20 employees or less, as they have to put up with civil rights and labor laws. Any business with more than 50 employees have to put up with lots of federal and state civil rights and labor laws.

EPLI pays for defense costs, judgments and settlements (till the policy limits) for the company, former and present employees, directors, and officers. It covers a lot of workplace-associated legal actions, like:

· Discrimination
· Sexual harassment
· Improper termination
· Violation of employment contract
· Careless evaluation
· Failure to hire or promote
· Erroneous discipline
· Deprivation of better career prospect
· Erroneous infliction of emotional distress
· Mishandling of employee-benefits plans

EPLI policies do not deal with workers' compensation, physical injury or property-damage instances as well as those cases particularly covered by another insurance policy.

EPLI Premiums
EPLI rates differ between states and companies. Usually, an insurer computes premiums by deciding the amount of coverage required by a business and its estimated risk. An insurer will form rates on many risk factors, like the number of employees in a company, the turnover ratio, if the business has a human resources department, and any history of harassment or bias suits against the company. Businesses having 10-20 employees with good HR practices and a clean record can be charged around $1,500 a year for EPLI coverage.
Employers can reduce their company's liability exposure and lower the insurance rates by following certain precautions:

· Don't employ employees having histories of drug or alcohol abuse.
· Adopt no-tolerance policies toward workplace harassment, discrimination, and alcohol and drug abuse.
· Prepare an employee-standards handbook and outline the skills and performance you desire for every position.
· Monitor your employees' performance regularly basis.
· Discuss workplace liability with your insurer to find out if your company should go for an EPLI policy.

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