Employer Liability Protection

Protect Yourself and Your Business – Understand Employer Liability Protection

The risks of being an employer can be daunting, especially for small business owners. In today’s world, no matter how responsible you are as a business owner, there is always the potential for legal liability to emerge. Fortunately, there are various measures employers can take to protect themselves and their businesses from financial risk in the event of a lawsuit or other legal action. 

One of the key ways employers can protect themselves is by purchasing employment practices liability insurance (EPLI). This policy helps protect against claims made by employees, former employees, and even job applicants who allege wrongful termination or other employment related conduct prohibited by law. EPLI not only provides coverage for defense costs and any settlements or judgments against the employer but also offers HR services that help small business owners stay up-to-date on laws governing the workplace. 

Businesses should also consider investing in general liability insurance to protect against potential litigation stemming from injuries sustained by customers on the property of the business or damages caused by the company’s products that result in third-party bodily injury or property damage. This coverage will pay out on behalf of your business if it is sued due to negligence or accidental wrongdoings and can cover court costs along with settlements or judgments up to the limits stated in your policy. 

Finally, businesses may look into purchasing workers’ compensation insurance which helps cover medical expenses and lost wages for employees injured on the job from any workplace-related accident regardless of fault. Workers’ compensation insurance also covers disability benefits to employees who were permanently disabled due to an injury suffered at work. 

By taking these proactive measures and ensuring they have adequate insurance coverage in place, small business owners can rest easy knowing they are properly covered in case of any legal issues arising out of their operations. With effective protection in place, employers can feel more secure running their businesses knowing they have a safety net should any lawsuits arise down the road.