You become at risk of an employment claim the moment you interview a prospective candidate. Understanding your risks, coverages and the law is crucial as you build your business.

This provides coverage for employers against claims of discrimination and harassment from employees and 3rd parties. With the legal costs of defending against such claims averaging $125,000 (excluding settlements and penalties), Employment Practice Liability Insurance is an essential part of any business with employees. Following are some elements of EPLI that the buyer should pay attention to in order to ensure the policy is endorsed properly:

3rd Party: EPLI policies can be endorsed to cover claims from 3rd party, non-employees such as customers or others who interact with your business.

Wage & Hour: This provides coverage for claims of violation of laws or regulations that deal with things such as Time & Attendance, Overtime, Meals & Breaks, Vacation, Exempt vs Non-Exempt, Employee vs Independent Contractor, etc.

Retro: It is important to ensure your policy covers claims that are brought today but that occurred over many years. The lack of a proper retro date will essentially strip coverage for more claims brought due to the nature of these type of claims.