EPLI Protects Businesses from Employee Lawsuits

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Employment Practices Liability Insurance (EPLI) provides protection for employers in the event that an employee files a claim regarding discrimination, failure to promote, harassment, and more. Large companies usually have ample coverage. However, small to mid-size businesses often lack a legal department or handbook specifying policies regarding hiring and terminating practices.

Liability Risks

Employers are at risk for an employment claim from the moment they interview a potential employee. This is because that individual could claim discrimination in the event that the employer does not hire them. Active staff members can also pose a liability risk. For example, if an employer terminates an employee due to attendance issues, that employee may file a wrongful termination suit.

To reduce these risks, companies can take the following steps:

  • Analyze their risk level with a trusted insurance provider like The Reilly Company
  • Purchase the proper level of EPLI based on risk analysis
  • Provide an employee handbook stating company policies and procedures in regards to hiring, discipline, and termination
  • Create a screening process to remove incompatible applicants on paper before seeking in-person interviews

EPLI Coverage

How much EPLI will cost your business depends on numerous elements. Some of these include the number of staff members in your employ, employee turnover rate, and previous suits filed against your company (if any). If your company size meets the requirements, some insurers offer EPLI as an addition to a Business Owner’s Policy (BOP) or General Liability Policy (GL). Business owners can opt for a standalone policy as well should they prefer that option.

Regardless of which coverage route you choose to take, your company cannot afford to neglect EPLI. However, it can be difficult to determine how much EPLI coverage your business needs. To ensure you are not overpaying or under-insuring your organization, contact the experts at The Reilly Company.

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Long-Term Financial Planning with Life Insurance

Life insurance provides long-term financial planning options. Individuals buy life insurance to help relieve financial burdens on their family in the event of their death. It can help their family pay for funeral costs, debts the individual owed, and more. There are two main types of life insurance: term or whole life.

Term Life Insurance

Term life insurance is not permanent. Individuals purchase it for a set number of years ranging from 5 to 30. It only provides death benefits and payout only occurs if the individual dies during the term of the policy. These policies are popular because they often cost less money than whole life insurance policies. However, they become more expensive with age, especially after the individual turns 50. It is possible to convert term life insurance policies into whole life policies should the individual wish to do so.

Whole Life Insurance

Whole life insurance provides coverage for the duration of the individual’s life. It also provides a cash value payout in addition to death benefits. Individuals with whole life policies can borrow against the cash value as well. However, it can take over a decade for any meaningful cash value to accrue. While whole life policies have higher premiums initially, they can be less expensive over the individual’s lifetime. This is because the premium is fixed, whereas term life premiums increase as the individual ages and has to renew the policy.

Deciding Between Term and Whole Life

It is possible to own both types of policies. This situation often occurs when an individual already has a whole life policy but wants additional coverage for a set amount of time. Some individuals, however, may own a term policy but need a long-term solution for retirement or estate purposes. In this instance, they can convert their term policy into a whole life policy or purchase a separate whole life policy and allow their term policy to expire. To learn more about life insurance policies, contact The Reilly Company.

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The Evolution of Cyber Protection

More than two decades ago, cyber protection started out as errors and omissions insurance (E&O). As the internet changed, E&O policies grew to include damage caused by viruses, unauthorized access of client information, and so on. More often than not, it was tech-based companies purchasing these policies. As network security expanded into privacy space, other industries began looking for standalone cyber policies that provided protection for network security as well as privacy liability.

Modern Cybersecurity Policies

Today’s cyber protection policies encompass a wide range of services. These include:

  • Errors and Omissions: These claims occur due to errors from services. These can be tech-based services, such as software, or professional services, such as legal or medical aid.
  • Media liability: These claims are the result of advertising based injuries such as infringement of intellectual property, copyrights, or trademarks. They can also include libel and slander.
  • Network Security: These claims relate to network security failures. Such failures can cause exposure or destruction of customer data, virus transmission, and more.
  • Privacy: While many think of privacy claims as a breach of sensitive online data, it can include physical data as well. Some examples would be a lost laptop or files accidentally thrown away.

Cybersecurity Insurance Limits

It is not enough to have cybersecurity insurance. Business owners need to understand what their policy covers as well as its limitations. For example, some policies only provide business interruption coverage if an attack affects your network for a set number of hours. Other items most policies do not cover include:

  • The expense required to improve existing systems.
  • Harm to reputation.
  • Loss of future income. For example, sales may be down after an attack because consumers lost trust in a vendor after a cyber security breach.

With technology constantly changing, businesses cannot afford to leave their cyber data unprotected. To learn more about cyber protection policies, contact us.

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Key Components of Coverage for Construction Businesses

Construction insurance provides a variety of coverages to meet specific needs. This can include a business owner’s policy (BOP), workers’ compensation insurance, commercial vehicle coverage, employment practices liability, and more.

Business Owner’s Insurance (BOP)

This protects your business from legal claims and business interruptions. It often provides general liability and loss of income coverage as well. Some examples of covered events include injuries on your property, property damage, and loss of income due to business interruptions like building or equipment damage.

Workers’ Compensation Insurance

If an employee becomes ill or injured while on the job, they may file a workers’ compensation claim. This type of insurance helps pay for medical bills and lost wages. This type of insurance is mandatory in some states. It protects both the employee and the employer from unexpected medical costs.

Commercial Vehicle Coverage

This is typically an essential coverage for businesses in the construction industry. Your power units are crucial to getting the job done. From parts to theft to liability, protecting them protects you.

Employment Practices Liability

Employment practices liability protects you and your organization from massive exposure to liability in the event that a current or former employee pursues legal action. This legal action can come in many forms, and can prove costly to your bottom line and your reputation without the appropriate resources in place.

Legally Mandated Coverages

The legal requirements for construction coverages vary from state to state. Several factors inform the coverage requirements and costs, including where and when your business operates as well as the total number of employees. Contact The Reilly Company to learn more about construction-specific coverages.

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