Have you ever heard of Bill O’Reilly?

In the remote chance you haven’t, he was the controversial political commentator for Fox News.

Fox News fired him for sexual harassment.

Don’t worry, I’m not here to talk about politics, Fox News or Bill O’Reilly.

I am here to talk about your money and how to protect it.

Bill O’Reilly’s example is a perfect example of why you need employment practices liability insurance (EPLI).

Let’s get into what that is and why you need it.

What is Employment Practices Liability Insurance?

According to the Insurance Information Institute, the definition of employment practices liability insurance:

EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. EPLI provides protection against many kinds of employee lawsuits, including claims of: sexual harassment, discrimination, wrongful termination, breach of employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress and mismanagement of employee benefit plans.

In general, employment practices liability insurance will pay out money to settled the claims listed in the preceding paragraph.

However, the devil is in the details. Each policy is different so you will have to review your policy.

Back to our example, since sexual harassment violates employees rights Fox News has liability for Bill O’Reilly’s actions.

Fox News will get sued because of Bill O’Reilly’s actions.

I bet Fox News has employment practices liability insurance that will cover pay outs.

Why Should You Have Employment Practices Liability Insurance?

Fox News’ situation with Bill O’Reilly and sexual harassment can happen to anyone.

You can’t control everything interaction between co-workers.

Who would have thought that Bill O’Reilly sexually harassed his co-workers?

That surprised me.

Now Fox News will end up paying millions to settle these claims.

That’s why you need employment practices liability insurance, not having it could bankrupt your company.

How Much Does Employment Practices Liability Insurance Cost?

That’s a really good question and I don’t have a really good answer.

The answer is: it depends.

An insurance carrier will consider several risk factors when deciding what to charge you.

It will look at the number of employees you have, the type of business you are in, the type of work environment you have and your previous history.

Work with your insurance carrier to help minimize the cost.

Regardless of the cost though, I bet Fox News is either glad they had this coverage or really sad they didn’t have it.

I bet they don’t care what their monthly cost was now.

Where Do You Get Employment Practices Liability Insurance?

This is the easy part.

You just need to call your insurance broker.

If you don’t have one, just Google “employment practices liability insurance broker” and include the area you live in.

You should have several that pop up.

Go meet with them and them determine who you like the best.

Summary

Insurance is one of those items that no one wants to pay for when they don’t need it.

But they are extremely glad they have it when they need it.

Just ask Fox News.

I hope you never need it but don’t get caught with your pants down.

One lawsuit could bankrupt you.

Do you have employment practices liability insurance?

If so, let me know you use in the comments below.

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