Why Embroker’s EPLI Insurance is a Must for Any Small Business or Startup

1. Why Embroker’s EPLI Insurance is a Must for Any Small Business or Startup The function of Embroker’s employment practices liability insurance is pretty straightforward: It protects a business against claims filed by employees— current, past, or potential. Which is helpful as according to an insurance industry report, about 1 in 10 small- to mid-sized businesses will be sued by an employee. Fortunately, EPLI insurance can help protect your growing business or startup should you find yourself in this 10%, facing a claim from an employee or a discrimination charge from a disgruntled potential or prior hire. There are several reasons why, as the owner of a growing business or the founder of a startup, you should consider getting Embroker’s EPLI insurance. First of all, unfortunately, small businesses and startups are particularly vulnerable to employee suits for wrongful termination, harassment, discrimination, etc. A small part of this is due to the nature of small businesses and startups where there tend to be fewer employees often working under more intense circumstances as the stakes are likely to be higher. At a massive corporation, for instance, one employee’s mistake is considerably less likely to inflict devastating or even terminal harm to the company’s bottom line, reputation, or future—especially if these assets are already particularly strong. But in a smaller business or a startup where it’s not uncommon for an

2. employee to be wearing several hats, the risk of a mistake making a larger ripple across the business is higher. It’s also more likely at a growing business or startup for employees to be working directly with a company’s owner, founder, or president who is likely to have a fervent, passionate investment—financial and emotional—in their enterprise’s success. In a pressure cooker, things can get heated. (Which is also a good argument for investing in Embroker’s comprehensive D&O insurance.) And in a passionate environment like this, just one off-hand remark on a bad day can quickly lead to an employee lawsuit. Perhaps more importantly, a small business or growing startup doesn’t often have the luxury of a big HR department or a battalion of attorneys on retainer. They are also, of course, less likely to have the capital to absorb the hit of an employee settlement, the average cost of which (per the earlier mentioned report) can reach $160,000 including defense charges when one doesn’t have EPLI insurance. Even small businesses and startups doing their best to foster a culture of openness, respect, transparency, and communication can’t ever wholly insulate against human unpredictability, misunderstandings, and malicious or fraudulent litigation. Fortunately, Embroker is a leading digital commercial insurance brokerage that specializes in meeting the insurance needs of growing businesses and startups. One of the keys to doing so is their leveraging the data that spells out what the practical, real-life threats are to a business right now. They’ve responded to that with custom-tailored insurance packages to shield businesses from the most likely threats to their bottom line, whether that’s from hacking and data breaches with their cyber insurance, fiduciary liability coverage, or EPLI insurance. At the risk of sounding cliché, we see every day that it’s better to have it and not need it than the other way around. Protect your business with EPLI insurance at https://www.embroker.com/