Car dealerships need many different types of insurance. They need coverage on their buildings, the cars in their parking lot, their computer systems, and even on the people test driving their vehicles. While all of these protections are standard, there’s another kind of coverage that dealerships often overlook: Employment Practices Liability Insurance. Known as EPLI, this insurance can protect your company in many ways.
So, what is Employment Practices Liability Insurance? And what can it do to protect the assets at your dealership? Learn more here.
Choosing Your Employees
When selecting the best employees to hire, you do a thorough background check. While this helps you avoid those who you won’t be able to trust and hire, it isn’t a perfect solution. You may still hire people who cause issues in the workplace. There are always workers who might sexually harass their coworkers or managers who discriminate for a number of reasons. What happens when one of these incidents ends up in the courtroom?
When employees or ex-employees file a lawsuit against the company due to the actions of a co-worker or manager, the business has to pay fines, court fees, and sometimes even a settlement, based on the outcome of the lawsuit. This can hurt your bottom line, but it’s also where EPLI can help.
Employee Practices Liability Insurance
Employee Practices Liability Insurance is designed to help employers when their employees or former employees file a lawsuit against them. Some of the many unforeseen situations that could occur include:
Human Resources Issues: Fired employees could file a suit based on discrimination, not following ADA guidelines, or any number of other reasons. Wrongful termination, failure to promote the worker, breach of contract, and even wrongful discipline are some of the many reasons why an existing or former worker would sue the dealership.
Employee Issues: Disputes between employees that make it a harmful workplace and sexual harassment accusations are two of the main reasons why an employee would sue the company that employs them. These issues pop up in workplaces rather quickly, and if they aren’t taken care of just as fast, a lawsuit could arise.
Protect Your Dealership and Employees
In a way, Employment Practices Liability Insurance also protects employees because it provides the company with a means to settle their complaints, even if it is through the courts. It also signifies that it is willing to help employees before they file suit in the hopes of solving workplace issues. The insurance also protects the company, keeping it from having to pay settlements and court fees out of its bank account. By having this insurance in place, you’re keeping your dealership safe from employee lawsuits.
Clearly, the owners of car dealerships have a lot to keep track of. Having Employment Practices Liability Insurance just gives you one less thing to add to the list. After all, that’s the point of insurance – to provide peace of mind.
Have Questions? Contact Charlotte Insurance
Want to learn more about Employment Practices Liability Insurance for dealerships? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.