Employment practices liability insurance (EPLI) is practically a necessity for a business of any size in California. Employment practices liability insurance can reduce the risks associated with employee lawsuits in California. It is important to understand your employment practices liability insurance policy thoroughly before buying it.
Where the law is not clear, or you are in an area with a lot of litigation, that often translates into financial risk in the form of litigation costs. One way to mitigate the risk is to obtain insurance.
For medium to larger employers, a good employment practices liability insurance (“EPLI”) should be considered with the advice of your insurance agent and legal counsel. There are a lot of provisions to reviews, some of the critical ones are:
- Choice of counsel: This is very important. Do you get to pick or the insurance company?
- Deductible/Retention: How much is it?
- Duty to Defend: What triggers the insurance company’s obligation to defend the claim?
- Costs of Defense: Is it total cost, or just a fixed dollar sum?
- Liability Coverage: What is covered? What is not covered (exclusions)? What is the cap?
California employers should review their EPLI coverage on a regular basis with an experienced employment lawyer and insurance agent on a recurring basis.
About Adishian Law Group, P.C. About Adishian Law Group, P.C. Adishian Law Group (http://www.AdishianLaw.com) is a California law firm with a statewide practice in the areas of Corporate law, Employment law, Real Estate law and Mediation Services. As of December 2016, the firm has represented corporate and individual clients located across 22 California counties, 13 States outside of California and 10 foreign countries in over 520 legal matters. Adishianlaw.com is one of the oldest continually operating law firm websites on the Internet. The firm serves its clientele via three offices located in the major business hubs of El Segundo, Palo Alto and San Francisco.
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