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Considering EPLI Insurance for Your Restaurant
As you begin your journey of opening a restaurant, you are most likely inundated with several options for restaurant insurance coverage. It can be extremely difficult, even after opening your restaurant, to truly know which coverages you need and which are less necessary for your specific business. EPLI is one of the many top insurance policies to consider when you own a restaurant. Read below to learn more about EPLI and why you may want to consider it to protect your specific restaurant business.
What is EPLI?
EPLI stands for Employee Practices Liability Insurance. Employee Practices Liability Insurance covers the employer from accusations and lawsuits brought on by alleged discrimination, harassment, and claims of wrongful termination. EPLI will cover these incidents, which when brought to litigation can easily bankrupt businesses small and large. The coverage afforded by EPLI is typically written on a claims-made basis. This means that as a policy owner you will file a claim upon an accusation of discrimination, retaliation, wrongful termination, sexual harassment, etc. in order to protect your business. According to the International Risk Management Institute, the EPLI policies contain “shrinking limits" provisions, meaning that insurer payment of defense costs—which are often a substantial part of a claim—reduce the policy's limits. This approach contrasts with commercial general liability (CGL) policies, in which defense is covered in addition to policy limits.”
Why Is EPLI Important for Restaurants?
EPLI is especially important for restaurants, as they tend to have a large wait staff, cooks, management, and more people in general working in an often high-stress environment. Even if the accusations against your restaurant or another staff member are false, lawsuits cost a significant amount of money. EPLI will cover your business and protect you from claims made by employees. It doesn’t matter how stringent your hiring process is – you can never know when there is someone on your staff (from senior level to entry level) that will cause a problem and in turn bring on the need for litigation. Without coverage, your entire restaurant business could be at risk, even if you as the owner have no wrongdoing.
When to Consider EPLI for your Restaurant Business
Did you know that in 2012, there were over 100,000 private sector business complaints? In addition, the average federal compensatory award in these lawsuits was $490,000 – and that does not include attorney fees or the damage to a restaurant’s reputation. With these clear-cut numbers, it isn’t hard to see why an EPLI insurance policy may be necessary. The truth is, whether you have five employees or 500, EPLI insurance is a vital insurance policy to protect your business. The premiums for smaller businesses with less employees will be lower than what large companies pay out. Your insurance provider will help you determine the level of coverage you will need.
How-To Secure EPLI
To secure an EPLI policy for your restaurant, it is important to work with professionals with a deep understanding of the restaurant industry. At Restaurant Programs of America (RPA) we work solely with the restaurant and food service industry. From large fine dining establishments to mom and pop eateries, we understand the unique challenges and opportunities your business faces each day. To secure EPLI, simply contact RPA. We have agents in all fifty states, prepared to make sure that you have the proper insurance coverage for your business. We look forward to working with you and protecting your restaurant business for a promising future.