As an employer, there are certain risks that you encounter every day.
While you work hard to ensure that you provide a safe work environment, sometimes this isn’t enough. Risk exposure and workplace liabilities are still present, even for the most diligent employer -which is why it’s important to ensure that you have the necessary coverage in place, to protect yourself in case of employment-related lawsuits.
If your company has employees, here are three essential liability coverage options that you should consider adding to your policy. Together, these coverage options work to form a protective barrier against employment-related lawsuits.
Directors and Officers (D&O)
This liability coverage provides coverage for a company’s management, as well as the company itself, from lawsuits that are brought against a company alleging misconduct and wrongful acts. Directors and officers liability insurance offers reimbursement to the directors and officers, or the company itself, in case of allegations leading to litigation. This valuable coverage is designed to offer liability coverage in case of lawsuits from employees, as well as shareholders, customers, creditors, suppliers, and even government bodies.
Workers compensation provides valuable liability coverage for companies with employees. If one of your employees were to sustain a work-related illness or injury, your company could be held liable for the medical expenses, and a portion of lost wages. Workers compensation provides compensation for injured employees, preventing your company from having to pay out-of-pocket for the expenses.
Employment Practices Liability Insurance (EPLI)
Employment Practices Liability Insurance (EPLI) is liability protection that steps in where worker’s compensation leaves off. While workers compensation offers reimbursement for employee’s expenses related to an injury or illness, EPLI provides protection against employment-related claims alleging discrimination, sexual harassment, or wrongful termination. This coverage offers liability protection in case of lawsuits which are brought on by present or former employees or their families.