We usually look towards commercial property insurance and commercial liability insurance products when we think of business insurance. The most common business insurance policies in Los Angeles are property coverage, liability coverage, workers compensation coverage, and business vehicle insurance.
But there is much more to the world of business than just offices and equipment. Often, for companies in Los Angeles, CA, their most valuable asset is not their physical appearance or inventory; instead, many small-business owners find that their employees are the most critical asset to their business.
In other words, it makes perfect sense for companies in Los Angeles, CA, to look towards hiring an Employment Practices Liability Insurance (EPLI) policy to protect both themselves and their employees.
An EPLI is a specialized type of business insurance specifically designed to protect employers against company employees’ claims. These claims can be connected to, but are not limited to: sexual harassment, wrongful termination, and discrimination in the workplace.
EPLI is designed to protect employers from allegations that arise from workers within their organization. In Los Angeles, CA, some laws specify what an employer must do if they receive a charge or lawsuit from an employee.
The employer should provide written notice of termination and a list of reasons for termination to protect the business from legal action if a company relationship breaks down and an employee must be laid off. Furthermore, the firm must notify the employee of their rights in connection with unemployment filings.
Another example comes in an employee asserting that they have been discriminated against based on their age, sex, race, disability status, etc. Suppose it is discovered that these accusations are valid and that discrimination has taken place within the company or organization. In that case, there is a strong chance that a lawsuit can and will be filed against the employer.
What EPLI does is protects employers against these types of legal allegations once they arise. This form of business insurance in Los Angeles, CA, is relatively inexpensive and easy to obtain. However, some companies are still not aware that this type of coverage exists or why their particular company can benefit from this protection.
For example, in Los Angeles, CA, any business with between two and 14 employees must have EPLI liability insurance. For companies with 15 or more workers, there is a different threshold for coverage requirements, but they too are required by law to maintain some EPLI. Certain types of businesses are required to obtain EPLI policies, even if they do not employ any workers. For example, if a company must hold a license or permit from the state to operate, they are also responsible for maintaining an EPLI policy.
There are many reasons why employment practices liability insurance is one of the most important types of business insurance in Los Angeles, CA:
– The dollar amounts in question in a lawsuit can be large and expensive to resolve, even without considering fines or other penalties that a judge may apply.
– Employers are required to provide EPLI under the law, so if they fail to do so, they are also in violation of the law.
– An EPLI policy will usually have a deductible. Still, that deductible can be kept to a minimum or even waived if the company has taken the appropriate steps to avoid legal action.
– Most insurance providers provide options for businesses with multiple locations, so each site is appropriately covered.
– Coverage offered under an EPLI policy will vary depending on the company’s size, but even small businesses can benefit from this coverage.
– Insurance providers usually provide discounts to companies with policies for workers’ compensation and general liability, but not EPLI.
– The benefits of an EPLI policy far outweigh any cost associated with having the insurance in place.
Employers do not necessarily want legal issues to arise; however, it is almost inevitable that working relationships will become damaged and may result in a lawsuit of some type if the relationship has lasted for any length of time. This is why EPLI coverage is so important, and every company needs to ensure they keep this type of insurance in place and up-to-date at all times.
In addition, the employer does not have to worry about the cost of having an EPLI policy because it can be written as “pay-as-you-go”; this means the business pays only for what is needed and when needed. A deductible that needs to be met before the insurance policy kicks in can also be arranged with most providers and additional coverage options such as employment practices liability audits (ELA).
Aside from EPLI, other available insurance policies are those related to workers’ compensation and general liability. Suppose an individual is injured due to working for a company or suffers another type of loss. In that case, these types of insurance policies must be in place and sufficient enough to cover the necessary expenses.
In Los Angeles, CA, and many other parts of the United States, employers are protected in various ways regarding workers’ compensation and general liability. Employers do not have to worry about footing the entire bill if they or their employees suffer an injury; instead, these types of insurance will cover the cost. However, small businesses might not think that they need to protect themselves in this way.
The truth is that all businesses should consider these types of coverage. Employers are not the only ones who might benefit from this type of insurance, though. Employees can also be protected with workers’ compensation and general liability insurance if they get injured on the job or if they need to bring a personal injury lawsuit against their employer. Workers’ compensation can be helpful for employees who are hurt on the clock. At the same time, general liability insurance can be beneficial if an employee is attacked by another person or is involved in some other type of accident.
Employers will not be able to protect their business if there are lawsuits against them. This can be devastating, as it might lead to significant financial problems that could cause the business to fail altogether. The right insurance coverage for workers and employees is vital to keep the company protected at all times. Workers’ compensation and general liability will ease an employer’s mind, knowing that all risks have been addressed.