California Employment Practices Liability Insurance

A variety of laws are in place to protect the rights of people you hire or are considering hiring. While employment practices liability insurance is a smart investment for many companies, it’s important to understand and carefully follow the laws that are already in place.

That’s where Paramount comes in. In California, employment practices liability insurance, also known as EPLI, provides coverage to employers against claims made by employees alleging discrimination (based on sex, race, age or disability, for example), wrongful termination, harassment and other employment-related issues.

Large corporations typically have substantial employment practices insurance coverage in place and are prepared to deal with just about any employment lawsuit. But Paramount has found that small or new businesses are the most vulnerable to these types of employment claims. Small businesses typically lack a legal department or an employee handbook detailing the policies and procedures that guide hiring, disciplining or terminating employees. The cost of insuring your California business for EPLI coverage depends on a variety of factors, such as the number of people you employ, if you’ve had prior suits lodged against the company, the percentage of employee turnover, and if you have established rules and practices in place. Depending on the size of the company, EPLI can be offered as an endorsement to a Business Owners Policy (BOP) or a General Liability Policy (GL). Paramount can also create a stand-alone policy written in conjunction with a BOP policy.

If you have any questions regarding this very important type of insurance, please contact the experts at our agency. They will be able to provide you with the kind of informative answers that will help you better understand your businesses’ needs.