It seems employers are exposed to lawsuits more now due to social media and information on the Internet. This is why Employment Practices Liability Insurance (EPL) is a Business Insurance policy that should not be overlooked. Employees are more aware of their rights these days. In most cases, 20 years ago, you had to go to the library, or know a lawyer to know your rights or understand them. Lets face it, now it's right at your finger tips. A tweet, Facebook post, or an Internet search can shed a lot of light on an unknown subject. You can even use Google to look up past EPL lawsuits and see whether you have a valid case/claim. Some common EPL claims are:
Most employers can look at this list feeling confident they are doing the right thing and not have to worry about a lawsuit or claim. The problem with that mindset is you could be in the right, but you still have to defend the claim. You can’t just say, here's our employee handbook or we did training on this subject, and expect the lawsuit to be dropped. These claims can be very costly. So whats the cost? According to AMTrust Financial, the average discrimination claim costs $125,000 (Top Trends EPL). That’s just the hard cost. Think about the possible soft costs like, employee morale, management time expanded on the case, higher employee turnover and not to mention a potential copycat case from another employee. Getting an Employment Practice Liability Insurance (EPL) is very easy these days. There are many factors that determine what the premium will be. Below is a list of some things underwriters look at:
California, Illinois, Michigan, New Jersey, and Texas have some of the highest claim frequency with California being the highest. In contrast, states such as West Virginia, Kansas, and New Hampshire have had relatively low EPL claim frequency and severity.
Some industries have higher frequency. For example, restaurants have proven to be the highest.
Number of Employees
More employees the higher the probability of a claim
If a company has a history of EPL claims it can be difficult to find a company to underwrite it, and if you do, they will most likely surcharge for past claims, which will make premium higher.
High turnover can be a red flag for many things, which can lead to higher premiums or limited markets to write the risk.
If you have any questions about Employment Practices Liability, or any other Business Insurance, please feel free to contact me. If you'd like a quote, please fill out the application below. Let me know if you have any questions. I would be happy to meet with you.
Commerical Insurance Agent
When it comes to Business Insurance, it's important to remember some things are not covered or excluded. The Business Personal Property (BPP) Form lists seventeen categories of property that are not covered. Below is a list. Some of these categories can be covered by the Additional Covered Property endorsement (CP 14 10) or some other policy. The exception would be for land, water, and contraband.
There are several reasons for excluding some kinds of property. The obvious one would be, it may be illegal to insure some kinds of property, such as narcotics being held for sale outside of normal medical channels. Another reason, some kinds of property are excluded from coverage under the commercial property policy because they can be insured more advantageously under other coverage. Automobiles and aircraft are examples of such property.
Property Not covered
a. Accounts, bills, currency, food stamps, or other evidences of debt, money, notes, or securities
c. Automobiles held for sale
d. Bridges, roadways, walks, patios, or other paved surfaces
e. Contraband, or property in the course of illegal transportation or trade
f. Cost of excavations, grading, backfilling, or filling
g. Foundations, of buildings, structures, machinery, or boilers
h. Land, including the land on which the property is located, water, growing crops, or lawns
i. Personal property while airborne or waterborne
j. Bulkheads, pilings, piers, wharves, or docks
k. Property more specifically described in another coverage form
l. Retaining walls, unless the retaining wall is part of the building
m. Underground pipes, flues, or drains
n. Electronic data and
o. Cost to replace or restore
p. Vehicles or self-propelled machines
q. Property while outside of buildings
If you need coverage for one of the above, it's important to reach out to an agent. As I mentioned earlier, there are endorsements or other policies that we can put in place to fill gaps in coverage. For example Electronic Data, this is important to many businesses now and there are policies available to get your business covered. If you have any questions about Property not Covered, or anything pertaining to Business Insurance, feel free to contact me.
Commercial Insurance Agent
When it comes to Business Insurance, every policy has policy conditions. Below are the Common Policy Conditions of the Commercial Package Policy (CPP). The common policy conditions address cancellation of the policy, changes in the policy, examination of the insured's books and records, inspections and surveys, premiums, and transfer of the insured's rights and duties under the policy.
The insured may cancel the policy at any time by mailing or delivering written notice of cancellation to the insurance company. If two or more insured's are listed in the declarations, only the one listed first (first named insured) can give notice of cancellation.
The Common Policy Conditions include a clause relative to making changes to the policy. It states that the policy constitutes the entire contract between the two parties. It can only be changed by written endorsement issued by the insurance company. Such changes may be made with the insurance company's consent, upon request of the first named insured.
Examination of Books and Records
The insurance company reserves the right to examine and audit the insured's books and records relative to the policy at any time during the policy period and for up to three years after the termination of the policy. This provision is included because many commercial property and liability coverages are issued with estimated premiums. The final premium is actually determined after the policy expires based on reported values from the insured by the audit called the Premium Audit.
Inspections and Surveys
This provision gives the insurance company the right to inspect the insured's premises and operations at any reasonable time during the policy period. These inspections are important in determining the proper insurability of the insured's property and operations. The insurance company may inform the insured of the results of the inspection and may recommend changes. However, they do not have the duty or obligation to do either.
The insured named first in the declarations (first named insured) is responsible for the payment of premium under the policy. Also, any return premium under the policy will be paid to the first named insured by the insurer.
Transfers of Rights and Duties Under the Policy
The insured cannot transfer any rights or duties under the policy to any other person or organization without written consent of the insurance company. For example, if the insured sells a business or property, or both, the policy cannot be transferred to the new owner without written consent of the insurance company.
If you have any questions about these Common Policy Conditions or need assistance finding them in your policy, please feel free to contact me. Also, if you have questions about anything else pertaining to Business Insurance, as always, I'm happy to help.
Commercial Insurance Agent