Stocking Up on Staffing Coverages
Most staffing companies are familiar with the basic insurance coverages – general liability, property, workers’ compensation, etc., but there are additional policies available to help mitigate exposures not generally covered under those “basic” insurance coverages. As an example, have you thought about adding either cyber liability or employment practices liability to your current insurance portfolio?
1. Cyber Liability
Cyber liability coverage exists to protect you, as a staffing owner, from financial loss, should there be a breach in security at your organization. Coverage can include:
- Response and notification expenses to affected (possibly affected) parties
- Investigation of breach
- Credit monitoring of those affected, sometimes for several years after a breach
- Defense costs
- Public relations expenses and more
One of the most-costly ramifications of a data breach is the response and notification expenses to those impacted by the breach. Depending upon the amount of records that one has, such costs can range from hundreds of thousands of dollars to millions. Therefore, typical coverage limits can range from $1,000,000 to $10,000,000, as an example.
2. Employment Practices Liability
Employment practices liability (EPL) insurance is a policy intended to cover employment-related lawsuits. The most common are wrongful termination, discrimination, and sexual harassment – though EPL covers a broad spectrum of other suits, including:
- Wrongful failure to employ or promote
- Wrongful deprivation of a career opportunity
- Wrongful demotion or negligent evaluation
- Wrongful discipline
- Employment-related misrepresentation
- Employment-related libel, slander, humiliation, defamation or invasion of privacy
Currently, premiums for employment practices coverage can be as low as $1,000 for a limit of $2,000,000 and deductible of $25,000 (which is the standard carrier deductible). This serves as an example. Please note that premiums are based on employee count, state mix, deductible thresholds, claim history, etc.
Interested in exploring either or both of these coverages further? Contact the ‘A’ Team.
- Cyber Liability E-Book
- Liability E-Book
- Dissecting the Uptick in Wage & Hour Claims
- Game of Tic Tac Toe: Employment Practices Liability
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