Even if you run the most successful business around, your employees still may press charges against you for a number of disasters. Whether it’s claims of discrimination, wrongful termination, or something else, it’s crucial for your business to have the right protection. That’s why having employment practices liability insurance is so important.

Luckily a Florida independent insurance agent can help you find the right type of employment practices liability insurance to protect against unexpected employee lawsuits. They’ll also get you equipped with this coverage long before you need to use it. But before we jump too far ahead, here’s a closer look at this crucial protection.

What Is Employment Practices Liability Insurance?

Employment practices liability insurance is a special form of Florida liability insurance designed to protect businesses from the costs of unexpected employee lawsuits. Employee lawsuits against a business commonly arise from the employment process. Since there are many reasons an employee may sue their employer, this coverage is a critical piece of every business’s protection.

What Does Employment Practices Liability Insurance Cover in Florida?

Employment practices liability insurance in Florida provides a lot of important protection for businesses of all kinds. If you have workers, you need to be sure your business is equipped with employment practices liability coverage.

Here are some of the most common coverages offered by employment practices liability insurance:

• Wrongful termination claims
• Sexual harassment claims
• Discrimination claims
• Employer retaliation
• Failure to promote claims
• Negligent evaluation claims

Employment practices liability insurance also commonly protects workplaces against inappropriate conduct claims. A Florida independent insurance agent can provide you with even more details of what coverage includes.

What Isn’t Covered by Employment Practices Liability Insurance in Florida?

Though employment practices liability insurance provides a ton of critical protection for businesses in Florida, it can’t cover everything. According to insurance expert Jeffery Green, these are a few of the most common coverage exclusions:

• Employee injury
• Business property damage
• Intentional acts by staff
• Dishonest acts by staff

To protect your business against employee injury costs, you’ll need a Florida workers’ comp policy. And to protect your business’s property against damage, you’ll need the commercial property insurance provided by a Florida business insurance policy.

Employee Lawsuit Stats for Florida

When considering the importance of employment practices liability coverage, it’s helpful to know how commonly these kinds of lawsuits take place, not just in Florida, but in the US overall. Check out the stats below and see for yourself.

• An average of 60% of employers face employee lawsuits.
• Out of court settlement costs for employee lawsuits average $40,000.
• About 10% of wrongful termination and discrimination cases have $1 million settlements.
• The cost of litigation rises by about 9% every year, meaning lawsuits continue to get more expensive over time

Because employee lawsuits are not only extremely common, but also costly, having the right Florida employment practices liability coverage is crucial for keeping your business afloat.

Employers Liability Insurance vs. Employment Practices Liability Insurance

Green explained that employers liability insurance is often included or added to a workers’ compensation policy in Florida. This coverage protects against employee claims of employer negligence that are not covered by workers’ comp insurance. Employment practices liability insurance, on the other hand, protects the employer against employee claims relating to the employment process, such as discrimination, harassment, etc.

Employment Practices Liability Insurance Cost

The cost of your employment practices liability insurance policy will depend on a number of different factors. Some of the most common aspects that influence your coverage’s cost are:

• The number of employees your business has
• Your business’s previous history of claims, if any
• Any established policies and procedures in place at your business

A Florida independent insurance agent can help you find exact quotes for employment practices liability insurance in your area.

Employment Practices Liability Insurance Third-Party Coverage

Employment practices liability insurance third-party coverage is an endorsement to this insurance that covers non-employee claims of harassment and discrimination. If your business gets sued by a third party, like a customer or other visitor or guest, for these claims, you’d need a third-party coverage endorsement to your employment practices liability insurance to protect you. A Florida independent insurance agent can help you add this coverage.

Here’s How a Florida Independent Insurance Agent Can Help

Independent insurance agents are fully equipped to protect self-employed workers against commonly faced liabilities. Florida independent insurance agents shop multiple carriers to find providers who specialize in employment practices liability insurance. 

They can deliver quotes from a number of different sources and help you walk through them all to find the best blend of coverage and cost.