Employment Liability Insurance (EPLI) is an essential insurance coverage that a CFO should recommend to their clients as part of their CFO Services. The risk of unstable and under performing employees is a great risk of a business owner and is something not always detected in an interview. EPLI gives the business owner coverage for losses plus defense costs for any Employment Claim which the insured employer committed wrongful acts to an employee. Wrongful acts include errors, omissions, misleading statements, misleading acts, misleading omission, misleading neglect, or breach of duty committed or attempted, or allegedly committed or attempted. Coverage includes claims for sexual harassment, claims under the family medical leave act and claims for inappropriately terminating an employee. You also may elect to have coverage if a third party harasses an employee. Please check with your client’s insurance agent for specific coverages with your clients specific situation.
This insurance is relatively inexpensive when you consider the risk of employment claims.
EPLI Insurance is a great first step for the Part Time CFO to be proactive in protecting their client from the risks associated with having employees.