What is Employment Practices Liability Insurance and Why Should You Be Aware of It?

As an employer, what do you need to be concerned about? That is a loaded question that I know and understand as a business owner in Anchorage. We could spend months discussing the new risks that we are seeing with the Pandemic but who has time, so let’s just focus on one thing at a time. My expertise is protecting families and businesses from risks that could cause financial harm from being sued, and helping to be restored after a naturally occurring cause of loss. Most business owners know they need to carry general liability. In the insurance world, we call this “slip and fall” insurance. This protects employers from someone who claims they have suffered bodily harm or property damage as a result of their business. If the hose your business left out causes someone to fall and results in a broken arm, they will put in a claim on your general liability for their physical injuries, and possibly their emotional suffering. In fact, even if they don’t intend to file a claim against your general liability, their own health insurance carrier will. Most know running a business without general liability is foolish. However, did you know that you are three times more likely to be sued by one of your own employees as you are to have a file brought against your general liability? Does your general liability protect you from your own employees? No, it does not.

You need Employment Practices Liability Insurance or EPLI. This protects YOU, the employer, from your employees possibly suing for discrimination or harassment. Many small business owners are unaware that EPLI coverage exists, or some mistakenly think that their general liability or professional liability will cover them. Imagine Sally Sue who feels she was wrongfully terminated because she had Covid and she seeks retaliation against her former employer? Ever hear of that happening? Or what about deprivation of a career opportunity because an employee feels “passed over”? That is a common claim. Or what about the pregnant mom who doesn’t feel she has appropriate lactation accommodations? Yep, she may have a claim. You can’t dream up all of the ways an employee may turn on their employer and file a claim. But you can take action and make sure you have EPLI!

What isn’t covered by EPLI? Work related injuries fall under Workers Compensation. Employee dishonesty would be covered by a Commercial Crime Policy. Professional errors fall under Professional Liability.

EPLI is relatively inexpensive. Can be as low as $500 per year. The premium is based on how many employees you have, what industry you are in, where you are located, any prior claims history, hiring/firing procedures, coverage limits and your deductible choice.

No one likes to think they could be sued, but we live in a very litigious society where it is all too common. If you would like more information or would like to discuss EPLI in greater detail, you are welcome to call Aurora National Insurance at 907-562-3020 and we would be happy to chat with you.

Lynnette Wood
Aurora National Insurance

Lynnette is a lifelong Alaskan. She grew up on Kodiak Island, and loved the subsistence life and close-knit community Kodiak offered. After high school, Lynnette went on to college at Seattle Pacific University where she met and married her husband, Jeff Wood, in 1993. She graduated with a Bio-Chem degree. 

After college, she settled in Anchorage and has been living there ever since.  Jeff and Lynnette have three children; Katrina, Caleb and Kennedy. For many years Lynnette ran a successful medical transcription business out of her home while the kids were young. After Kennedy entered kindergarten, Lynnette went back to school and earned a Master’s degree in Teaching. Lynnette taught in both the public and private school systems before entering the insurance world. 

She purchased Aurora National Insurance in 2012 and hasn’t looked back. Helping people understand insurance lingo and the policies they purchase is her passion.  Lynnette strives to provide an enjoyable and educational experience for businesses and families as they work with her agency to find the best insurance coverage available. 

11/22/2021