Employment practices liability coverage is essential for all types and sizes of businesses. Large companies usually know how important proper coverage is because they have a high risk of facing lawsuits from one of their many employees. However, even small companies with very few employees need this specific type of insurance coverage. This is because they never know when one of their employees may become disgruntled and file a discrimination, harassment or wrongful termination claim against them.
Employment practices liability coverage can vary significantly in cost, depending on several different factors. These factors include (but are not limited to):
- Number of employees
- Company size
- Employee turnover rate
- Lawsuit history
Although most small businesses are constantly looking for ways to save money and decrease operation costs, it is not wise to make sacrifices in insurance coverage. By choosing to purchase quality insurance coverage, businesses may actually be able to save a significant amount of money in the long run.
If allegations are ever brought against employers by employees, businesses that do not have appropriate insurance coverage could face substantial legal costs. In many cases, a single lawsuit can bring small businesses to bankruptcy if they lack adequate insurance coverage.
Employment practices liability coverage is quite common and can be purchased from a reputable insurance provider. Businesses that are currently unprotected are encouraged to look for an appropriate policy at their earliest convenience.