Considering freelancers now make up 35 percent of the American workforce, according to Forbes, it’s important to have employment practices liability insurance (EPLI) to ensure protection for the members of your company who are not in the office on a daily basis. When you’re dealing with issues within the business, EPLI coverage comes in handy in the case of litigation. And in this day and age, litigation is more and more common.
EPLI protects a business from workers’ claims, including wrongful termination, breach of contract, sexual harassment and more, according to Risk Management Monitor. Since EPLI originally didn’t cover contractors, it’s imperative that you discuss coverage with your insurance agent so you can ensure that all types of workers will be protected. When you’re clear and concise about what you need, then you can effectively avoid gaps in your coverage. This is why EPLI is necessary for businesses that use contractors, including staffing firms
When EPLI Matters
A recent example that changed the face of EPLI practices today is the big Uber lawsuit of 2016, when Uber reached a $100 million settlement deal between them and their contract workers. Having employment practices liability coverage that expands to contractors would’ve protected Uber from having to shell out that kind of money. When it comes down to multiple forms of discrimination and harassment, EPLI coverage is what will keep your business safe. If you’re dealing with third-party vendors or clients, having this type of coverage is essential for your business. And clearly defining that a contractor is also an employee will help avoid future litigation; not defining what a contractor is what got Uber in trouble. Uber isn’t the only company in recent years to come under fire; so has Denny’s restaurants and Starbucks for discrimination purposes.
What an EPLI Policy Should Contain
When allegations happen, coverage is needed. World Wide offers comprehensive protection for staffing agencies of all sizes; employers, employees and clients are protected underneath one roof. Talk to your insurance agent and make sure that contractors are included in your policy. A good employment practices liability insurance policy should contain the following:
- A broadened definition of a claim
- Coverage for workplace torts
- Duty to defend
- Deductible aggregate available
- Individual policy – separate limits and deductible
- Insured includes the clients of the staffing service
- Wrongful business environment coverage
- Knowledge of a claim is limited to corporate officer or risk manager
- Coverage territory is worldwide for all named insureds domiciled in the United States
The thing is, you can’t guarantee that something won’t happen down the line. Allegations arise that include all types of harassment and discrimination. Don’t be like Uber, Denny’s or Starbucks and make a huge mistake. You can prevent a lot of heartache by making sure you have the proper coverage for when it really matters. Employment practices liability insurance coverage comes in handy for all types of businesses, not just staffing agencies.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.