The Most Important Insurance needed for Restaurant Owners
  • Post last modified:December 28, 2021
  • Post category:Insurance

Employees suing their employers is becoming more common nowadays. Sadly, many employees use this right wrongfully and file lawsuits when it’s not even justified. This is why, whether you’re a franchisee or the owner of a stand-alone restaurant, you may need EPLI coverage to protect your business. 

These days, more and more restaurants are adopting the use of EPLI coverage. We understand why this is so important for your business, and in this article, we will explain why you should invest in it.

What is an Employment Practices Liability Insurance Coverage?

EPLI is a form of professional liability insurance that protects your business against any legal action that could arise as a result of an employee suing the business. This includes:

  • Wrongful dismissal
  • Sexual harassment
  • Unfair dismissal
  • Discrimination
  • Defamation
  • Deprivation of career opportunity
  • Failure to promote or employ
  • and more…

An EPLI policy will pay out if you are found liable for any of these claims. It will also pay for the expenses incurred during the court proceedings like litigation and court fees. This will ensure your restaurant doesn’t suffer any losses while you fight this battle.

Why Should You Get an EPLI Policy? 

In 2019 alone, over 72,000 charges were filed with the equal EEOC (Equal Employment Opportunity Commission). This shows how common it is for businesses, even small ones, to get sued by their ex or current employees over the situations mentioned above.

Dealing with such lawsuits and handling the litigation fees alone can take away a massive chunk of time and money, which should’ve been spent on growing your restaurant. And then, if you lose the case, you’ll end up paying even more money.

These things can easily be avoided with the help of EPLI policy, and you can rest assured knowing your restaurant won’t be getting under the heat from furious employees.

How Much Does EPLI Coverage Cost?

The cost of EPLI coverage varies from business to business and majorly depends on a few factors. Some of these include:

  • Number of employees
  • The number of years you’ve been in business
  • Your location and industry
  • Your type of business
  • The size of your payroll In general

The cost of an EPLI policy goes up to $5000 per year. However, small restaurants can get a policy for typically around $1000 per year. 

Over to You:

Whether you own a restaurant or a franchise, it’s essential to have an EPLI policy to protect your business from claims of harassment and wrongful termination by employees.

If you haven’t already gotten an EPLI policy, now is the time to do so. It could save you a lot of headaches in the long run, including the waste of money, time and also damage to your business’s reputation.

Feel free to contact Paradiso Insurance to get a comprehensive breakdown of EPLI insurance and the type of coverage for your restaurant.