1851

The menu of insurance products a company needs can be extensive and depends largely on a number of variables, including the nature of its services, the state or states in which it operates, its operations model and a range of other factors. But there is one insurance product that is essential for every business &mdash; at least every business with employees.

Employment Practices Liability Insurance (EPLI) covers business owners in the event of a lawsuit claiming a violation of U.S. Employment Practices regulations, which can include everything from wrongful termination to sexual harassment to discrimination to emotional distress and a long list of other wrongdoings.

According to Doug Groves, Principal at <a href="https://www.certmgmt.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=have-employees-you-better-have-epl-insurance-2707576" target="_blank" rel="nofollow" target="_blank">EZ CERT Management</a>, employers without EPLI risk catastrophic damages.

&ldquo;You have to understand that these types of claims are not covered under general liability insurance or workers compensation policies,&rdquo; he said. &ldquo;You have to have EPLI, or you risk losing your business and potentially far more.&rdquo;

Groves says anyone curious about how companies are affected by Employment Practices Liability claims need only read the news, which is filled with stories of companies being sued for violations.

&ldquo;There are new examples each day, and they tend to catch on in the news,&rdquo; he said. &ldquo;Companies are being sued for sexual discrimination and harassment, and it can be damaging to the business.&rdquo;

Groves points to Forbes top 50 company as a recent example of a company reeling from Employment Practices Liability violations. The global sportswear brand has been accused of passing over women for promotions and paying them less than their male counterparts. Many former employees joined a class-action lawsuit against the brand.

&ldquo;They are an enormous company with a massive legal department, but it doesn&rsquo;t matter if they win the suit or not, the lawsuit is expensive and damaging to the brand,&rdquo; he said. &ldquo;Ultimately, two top executives had to resign.&rdquo;

While this company can absorb that kind of damage, most smaller brands cannot. Groves says franchise brands face an extra level of risk because they have so many owners and managers but just one brand.

&ldquo;Any franchisee who is underinsured and accused of a violation can lose their store, which can snowball into something very damaging for the brand at large,&rdquo; he said.

Groves recommends that franchisors add EPLI to their FDD requirements to make sure that every franchisee is properly covered.

&ldquo;Too many insurance packages do not properly cover these types of claims,&rdquo; he said. &ldquo;Franchisors need to make sure that all of their franchisees are adequately covered.&rdquo;

Even an established franchisor would do well to add EPLI to their FDDs. &ldquo;<a href="https://1851franchise.com/ezcertmgmt" target="_blank">EZ CERT</a> has watched over a number of franchise brands as they add coverage midstream, and it always goes very well,&rdquo; Groves said.

Groves says EPLI is one of the most common and important insurance products businesses purchase, and yet too many companies are still under-covered.

&ldquo;It is absolutely crucial, it should be a baseline coverage, but some companies just don&rsquo;t understand the importance or they don&rsquo;t realize that they are under-insured,&rdquo; he said. &ldquo;It&rsquo;s something that every company needs to be on top of. The stakes are just too high to risk under-coverage.&quot;

Have Employees? You Better Have EPL Insurance

1851 Franchise

Companies without Employment Practices Liability Insurance can be decimated by claims of employee mistreatment.

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

have-employees-you-better-have-epl-insurance

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Photo of "franchise" and "day job" balancing on see-saw

Can You Run a Franchise Without Quitting Your Day Job?

part-time-franchises-with-day-job

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

Why Buying Into a Franchise Is About More Than Just Brand Recognition

why-buying-into-a-franchise-is-about-more-than-just-brand-recognition

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Have Employees? You Better Have EPL Insurance

MORE STORIES LIKE THIS