So, you run your own small business or you just started the business you have always dreamed of. Now, you are ready to start hiring employees and growing as a company. Congratulations! This is a tremendous step towards success and fulfillment for any business owner.
But what happens when you have to let someone go because they are always showing up late, or won’t stay off their phone during business hours, or any of the other myriad reasons why you may need to terminate an employee? Even more so, what happens if you don’t have Employment Practices Liability Insurance to protect you in the process?
There are situations that can open up the risk of an individual filing a claim against your business. Claims following a termination, or any other situation that could arise between an employer and employee, include:
- – Discrimination (sex, race, age, etc.)
- – Wrongful termination
- – Harassment
- – Other employment-related issues (failure to promote, insufficient training, etc.)
This is where Employment Practices Liability Insurance (EPLI) comes in to protect you and your business. To understand the current legal climate of EPLI in Oregon, the importance of getting EPLI coverage, potential costs, and how to get connected with one of our agents at Ashland Insurance, Inc., simply read on for all the answers!
Legal Landscape of Employment Practices Liability Insurance in Oregon:
You, being an employer in Oregon, need to be aware of the strict laws in our state designed to protect workers and promote fair treatment in the workplace. You must be compliant with federal laws for workers , including Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and the Family and Medical Leave Act (FMLA). State laws will also directly affect your business, like the Oregon Equality Act (ORS 659A) that protects workers from discrimination based on:
- – Race, color, and national origin
- – Age
- – Sexual Orientation and gender identity
- – Disability
- – Religion
- – Marital status
- – Family affiliation
- – Convictions
- – Whistleblowing
The legal landscape in Oregon concerning employee rights and fair workplace standards is an ever-evolving backdrop that your business will have to adapt to. In recent years, our state legislation has added new laws, as well as amendments to existing laws that protect workers from hostile work environments.
For example, the 2019 Workplace Fairness Act requires your business to write and enforce policies defining harassment and discrimination, and also restricts you from imposing Non Disclosure Agreements that could cover up instances of harassment or discrimination.
Although these kinds of laws have been important improvements in creating safe work environments in Oregon, it also puts business owners like you at risk of litigation.
With how complex employment laws are, it is important that you protect yourself and your business from allegations of discrimination, harassment, wrongful termination, or retaliation.
Even if you do your due diligence and put stringent policies and procedures in place, you could be at risk of costly legal battles and damage to your business’s reputation. This is where Employment Practices Liability Insurance coverage comes in.
Importance of Employment Practices Liability Insurance for Businesses:
Is your business prepared to handle lawsuits, legal fees, settlements, paying for damages, and the ensuing negative publicity? Most small businesses can’t survive these types of allegations and the aftermath.
An EPLI offers you a lifeline in these situations by providing coverage for legal defense costs, settlements, and judgments arising from covered claims. Coverage with Ashland Insurance, Inc. can also offer invaluable support in the face of long-term risks of employment-related claims by managing fallout like reputational damage and employee morale issues.
By transferring the risk of employment-related claims to an insurance carrier, you can continue to operate your business without the fear of crippling financial and public image damage.
Cost Considerations:
The cost of your EPLI coverage will vary depending on the size of your business, what industry you’re in, any claims history, and existing coverage limits. This will be determined when you schedule an initial consultation and risk assessment.
If you only employ a small number of workers, you might only need a standard policy or an added endorsement to your existing policy. In this case, your premium could range from a few thousand to tens of thousands depending on your perceived risk factor.
Or, if you have special circumstances or employ a larger number of workers, you may opt for a customized EPLI program. If you need a customized policy, our qualified professional agents will tailor your coverage to your situation, though this could come with premiums of hundreds of thousand to millions of dollars annually for coverage.
Don’t let the sticker-shock of the upfront costs associated with EPLI coverage scare you off from getting protection for your business.
Considering that the average cost of an employee claim against a business is almost $600,000, the long-term savings of having this safety net provide you peace of mind should you find yourself in this kind of situation. Ashland Insurance, Inc. can even help you to manage your risk and provide services that may lower your premiums by reducing your perceived risk.
How to Connect with Ashland Insurance, Inc. for EPLI Coverage:
Ashland Insurance, Inc. is a trusted provider of insurance solutions, including EPLI coverage, for businesses in Oregon and beyond. With a commitment to excellence and personalized service, we understand the unique risks facing businesses in today’s competitive environment. Our team will work closely with you to customize comprehensive insurance solutions to your needs.
We are committed to finding the best policies for you and your business, then tailoring it to match your needs. To pursue EPLI coverage through us, just follow these steps:
- Initial Consultation: Contact us either by giving our office a call, or filling out the quote request on our website to schedule an initial consultation with one of our experienced insurance professionals. During the consultation, you will discuss your specific needs, risk profile, and coverage objectives with one of our outstanding agents.
- Risk Assessment: Ashland Insurance, Inc. will conduct a risk assessment to review existing policies, claims history, and industry-specific risks. This step will evaluate your exposure and vulnerability to claims being made against you and your business.
- Customized Proposals: Your agent will evaluate your risk level and consultation, then customize your EPLI proposal to best suit your needs and budget. The proposal will include coverage options, limits, and premiums so you can make an informed decision about what is right for you!
- Review and Implementation: After you have reviewed the proposal, we will work closely with you to finalize your selection and go over the policy terms with you. We do this to make the implementation process as seamless as possible, so you can get back to doing the work that you love.
- Ongoing Support: Besides providing EPLI coverage, Ashland Insurance, Inc. is here to offer ongoing support for your business, including claims management assistance, risk mitigation strategies, and policy servicing. Our dedicated team is always available to address your concerns, answer any questions you may have, and assist you in any way we can.
Employment Practices Liability Insurance (EPLI) is a necessity for protecting your business against the risks of operation in Oregon’s dynamic legal landscape. Ashland Insurance, Inc. is ready to help you find the coverage you need and navigate the complexities of employee-related claims and policies by offering tailored solutions and personalized service. Safeguard your business, reputation, and assets simply by contacting us and scheduling your consultation today!