The cost of insuring your business depends on a variety of factors, such as:
- The number of people you employ
- Whether you’ve had prior suits lodged against your company
- The percentage of employee turnover
- Whether you have established rules and practices in place.
Depending on the size of your company, EPLI can be offered as an endorsement to a Businessowners Policy (BOP) or a General Liability Policy. Also, a specific stand-alone policy can be written in conjunction with a BOP.
EPLI Claims
EPLI coverage is usually written on a claims-made basis. This means the incident resulting in the claim had to occur during the coverage period.
Because employment claims often come months or even years after the alleged incident, your company might be vulnerable if your insurance coverage was dropped or if tail coverage (liability insurance that extends beyond the end of the policy period) wasn’t purchased.
