Employment Practices Liability
What is it?
Frontier Risk's Employment Practices Liability (EPLI) protects cannabis manufacturers, dispensary owners, and other cannabis business owners against lawsuits from employees claiming legal rights violations.
Why is it important?
Employee turnover in the cannabis industry is high, with 40 to 60% of employees quitting within a few months of employment, posing a significant litigation risk. Employment Practices Liability Insurance (EPLI) claims can cost approximately $75,000 per claim in settlements and up to $200,000 per claim in court verdicts. EPLI protects your business from these expensive defense fees, ensuring financial stability and legal protection against employee claims.
What does it cover?
Wrongful Termination
Protects against accusations of unfair firing or dismissal.
Discrimination
Coverage for allegations of treating employees unfairly based on characteristics like race, gender, age, or disability.
Harassment
Safeguards against claims of workplace harassment, whether sexual, verbal, or otherwise.
Retaliation
Covers situations where an employee claims they were mistreated due to actions like whistleblowing.
Defamation
Protects against claims of using false statements to damage a company’s reputation.
Mismanagement
Coverage for claims of mishandling employee benefits, contracts, or policies.
Why Frontier Risk?
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Common Questions
EPLI (Employment Practices Liability Insurance) and GL (General Liability Insurance) serve different purposes. EPLI protects businesses from claims related to employment practices, such as discrimination, harassment, and wrongful termination. On the other hand, GL insurance covers third-party bodily injury and property damage claims arising from the business's operations or premises.
Even if you have workplace policies in place, it is still advisable to have EPLI coverage. While policies provide guidelines, they may not fully protect your business from employee lawsuits. EPLI acts as an extra layer of protection, covering legal costs and potential damages associated with claims of discrimination, harassment, wrongful termination, and other employment-related issues.
Anyone with employees, including small business owners and large corporations, need EPLI insurance. It provides vital protection against the risks of employee lawsuits alleging discrimination, harassment, wrongful termination, and other employment-related claims.