Here are two crucial types of insurance you should never go without!
Employment Practices Liability Insurance
A lesser-known but very important insurance coverage for business owners is Employment Practices Liability Insurance or EPLI. EPLI insurance protects you against lawsuits filed against your business by your own employees under claims that your company violated their workers’ rights.
Types of lawsuits covered under these policies include:
● Wrongful termination
● Poor management of employee benefit plans such as retirement accounts
● Sexual harassment claims
● Discrimination
● Infliction of emotional distress
● Breach of employment contract
In our increasingly litigious world, the chance of being sued by one of your own employees is greater than ever. While every business owner should have policies in place to reduce the likelihood of employment issues that can lead to a lawsuit, there’s always still a risk, and that risk is simply not worth it.
If you aren’t sure how to get EPLI coverage, start by talking to your general liability insurance policy provider to see if they offer it as a rider on your general liability policy. Otherwise, many companies offer affordable stand-alone EPLI policies.
Professional Liability Insurance
Professional liability insurance is an essential safeguard for service-oriented businesses. Also known as errors and omissions insurance, this coverage protects your business against claims arising from errors, omissions, or negligence in your professional services. Even the most seasoned professionals can make mistakes, and in such cases, your clients may seek compensation.
Professional liability insurance provides financial protection by covering legal fees for your defense and money for settlements and damages paid to the suing party. If you need a license to do what you do – such as doctors, lawyers, contractors, and accountants – professional liability insurance is an absolute must.
These policies also usually include an option for “prior works coverage” and “tail coverage” that extend your policy coverage limits for work you did before taking out the policy and for work you completed during the policy term even after you’ve canceled that policy.
For example, a tail coverage policy will cover an error you made while doing tax work for a client during the policy term, even if the error isn’t discovered by an IRS audit until two years later when you’re no longer paying premiums for the policy.
Protecting Your Business and Planning for Its Future
It’s our passion to help business owners create businesses and lives that they love, and that starts with a strong foundation that protects you and your business. If you’re ready to take the next steps toward building and protecting your business, schedule your free 15-minute discovery call. We can’t wait to be part of your team.
AB Law, PLLC is a full-service business law and estate planning firm that serves clients throughout Texas. All consultations are free and no question is too silly, ridiculous, or complex. https://calendly.com/ablawpllc www.ab-firm.com