Colorado Employment Practices Liability Insurance
(Quotes, Cost & Coverage)
Get Colorado employment practices liability insurance quotes, cost & coverage fast. EPLI covers CO businesses against employee's claims that their legal rights as have been violated including; sexual harassment, discrimination, wrongful termination and more.
CO Employment Practices Liability Insurance
Colorado employment practices liability insurance (EPL insurance or EPLI) offers coverage for employers against any claims that are made against them by employees.
Typically, large companies have a significant amount of Colorado employment practices liability insurance coverage. It ensures that they are prepared for any costs that may arise should an employee files a claim.
Given the fact that larger companies usually have a large employee base, having this coverage makes sense. However, it's not just big corporations that should have this type of insurance; smaller CO businesses and startups should have it, too.
In fact, it might be even more beneficial for small businesses and startups to have employment practices insurance coverage, as they tend to be more vulnerable to employee-filed claims. Why? - Because often, these types of organizations don't have a legal department or an employee handbook that details their procedures and policies regarding hiring, terminating, and managing their employees.
Who's At Risk For A Employment Practice Liability Claim?
Any business owner - from a large CO corporation to a small brick and mortar operation - is at risk of having a claim filed against them by an employee the minute they begin interviewing possible employees. For instance, should the company decide that they don't want to hire a candidate, he or she could allege discrimination and file a claim against the business.
If the business does end up hiring the person that was interviewed and ends up firing him or her later on as a result of poor attendance, for example, that person could claim he or she was wrongfully terminated.
Whether the allegations are founded or not, whenever an employee files a claim against an employer, the company could face serious financial upheaval. This is where Colorado employment practices liability insurance can help.
For example, a judge could find the company guilty and a settlement would have to be paid. And, even if the claim ends in favor of the business owner, the company will still have to pay legal fees and deal with any repercussions that surround a claim, such as a tarnished reputation.
Who Does CO EPLI Protect?
Most CO employment practices liability policies protect any claims that are brought against a business owner, the business itself, management, and in some cases, other employees. This insurance covers any claims that are filed against the above-mentioned by the following individuals:
- Past employees
- Potential employees
- Temporary employees
- For-hire employees
- Independent contractors
What Does Colorado Employment Practices Liability Insurance Cover?
Colorado employment practices liability insurance provides coverage for the costs that are associated with various types of employee claims. Examples of claims include:
- Breach of employment contract
- Deprivation of career opportunity
- Failure to employ or promote
- Mismanagement of employee benefit plans
- Negligent evaluation
- Sexual harassment
- Wrongful discipline
- Wrongful infliction of emotional distress
- Wrongful termination
What Colorado Employment Practices Liability Insurance Doesn't Cover
CO employment practices liability insurance typically does not cover:
- Actions that occurred outside of the United States
- Civil fines
- Claims of bodily injury
- Criminal fines
- Liabilities for acts of intentional or dishonest wrongdoing
- Property damage
- Punitive damages (can vary by state)
- Rest and meal times
- Social media usage
- The Consolidated Omnibus Reconciliation Act (COBRA) associated claims
- The Employee Retirement Income Security Act (ERISA) associated claims
- The National Labor Relations Act (NLRA) associated claims
- The Worker Adjustment and Retraining Notification Act (WARN) associated claims
- Unemployment benefits
- Unpaid wages
- Workers compensation
How Much Does Colorado Employment Practices Liability Insurance Cost?
How much does Colorado employment practices liability insurance cost? The costs that are associated with a legal claim filed by an employee, customers or vendors can be astronomical. These costs can include legal fees, court fees, settlement fees, public relations, and anything else that occurs as a result of a lawsuit. Trying to cover those costs out of pocket could potentially ruin a business. Being covered by employment practices liability insurance will help to soften the financial blow that comes when and if an employee files a claim.
The cost of this insurance varies. There are a number of factors that are taken into consideration when determining the cost, such as the type of business that is being covered, the number of people the business employees, any claims that may have been filed against the business in the past, and the net-worth of the business.
An Ounce Of Prevention Is Worth A Pound Of Cure
To help prevent employee lawsuits, educate your managers and employees about your guidelines and acceptable behavior so that eliminate problems before they start. Following are some ideas you can implement in your business right away:
- Conduct background checks on all possible candidates.
- Conduct periodic performance reviews of employees and carefully note the results in the employee's file.
- Create a job description for each position that clearly defines expectations of skills and performance.
- Create an effective record-keeping system to document employee issues as they arise, and what the company did to resolve those issues.
- Develop a screening and hiring program to weed out unsuitable candidates on paper before calling them to interview in person.
- Develop an employee handbook detailing your company's workplace policies and procedures. It should include attendance, discipline, and complaints. The employee handbook should also contain an employment at-will statement and an equal employment opportunity statement.
- Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.
- Institute a zero tolerance policy regarding discrimination, substance abuse and any form of harassment. Make sure you have a policy that allows employees to report infractions without fear of corporate retribution.
- Post policies in the workplace and place and also them in employee handbooks so policies are crystal clear to everyone.
- Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
- Use an employment application that contains an equal employment opportunity statement along with a statement, that if hired, employment will be "at-will," meaning their employment can be terminated at any time - for any reason or for no reason at all - with or without notice. Also ensure that your employment application does not contain any age indicators, such as date graduated high school, as this could increase your risk for age discrimination claims.
Further Reading On Management Liability Insurance
- Directors And Officers Insurance For Nonprofits
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- Educators Legal Liability Insurance
- Employment Practices Liability Insurance
- Fidelity And Crime Insurance
- Sexual Abuse And Molestation Insurance
- Sexual Misconduct Liability Insurance
CO Employment Practices Liability Insurance Quotes
Request a Colorado Employment Practices Liability Insurance quote in Alamosa, Arvada, Aurora, Boulder, Brighton, Broomfield, Castle Pines North, Castle Rock, Canon City, Centennial, Colorado Springs, Commerce City, Craig, Delta, Denver, Durango, Englewood, Erie, Evans, Federal Heights, Firestone, Fort Collins, Fort Morgan, Fountain, Frederick, Fruita, Glenwood Springs, Golden, Grand Junction, Greeley, Greenwood Village, Johnstown, Lafayette, Lakewood, Littleton, Lone Tree, Longmont, Louisville, Loveland, Montrose, Northglenn, Parker, Pueblo, Rifle, Steamboat Springs, Sterling, Superior, Thornton, Trinidad, Westminster, Wheat Ridge, Windsor and all other cities in CO.
Colorado Insurance Regulations & Limits
When it comes to insurance regulations in Colorado, there are a few things that you want to be aware of. Let's take a look at the laws and rules surrounding insurance in CO.
Colorado Commercial Insurance
The most common type of business insurance is liability insurance. Commercial liability insurance is required to cover things like property damage, bodily injury, personal injury, advertising injury and legal defense and judgments. Colorado is a fault state, and businesses are not required to carry liability insurance in order to operate. There is a cap on damages that are not economic set at $468,010 with a higher limit set at $936,030 for non-economic damages in which it can be proven that the original damage amount is too low. However, these cases are rare.
Punitive damages in exemplary damages are almost unheard of in Colorado, but there is no limit on economic damages. The statute of limitations to file against types of damages is two years - or three years if the damages were sustained in a vehicle. Most experts recommend the businesses carry anywhere from $500,000 to $1 million in general liability coverage.
The only other requirements for businesses that you need to be aware of is the requirement for any business that hires hourly or wage employees to carry Worker's Compensation insurance and for those same companies to have minimum insurance coverage on their vehicles which for a vehicle used for business purposes means that you will have to purchase a commercial auto insurance policy.
CO Personal Insurance
The most common type of personal insurance is the one that everyone is required to have - auto insurance. The law requires that you have at least $25,000 per person and at least $50,000 per accident in liability insurance; as well as an additional $15,000 for property damage. These are the main regulations covering auto insurance in Colorado and they are very similar to the regulations found in most of the other states.
The only additional regulation that you need to be aware of when it comes to personal insurance has to do with life insurance. If you have life insurance, your insurance provider is required to give you a one month grace period before they can cancel your policy due to nonpayment. This protects consumers against having policies canceled due to having a late payment. This is the only regulation you should know when it comes to life insurance.
If you are looking for state specific Employment Practices Liability insurance quotes, costs and information: California Employment Practices Liability Insurance, Colorado Employment Practices Liability Insurance, Delaware Employment Practices Liability Insurance, Florida Employment Practices Liability Insurance, Illinois Employment Practices Liability Insurance, Kentucky Employment Practices Liability Insurance, New Jersey Employment Practices Liability Insurance, New York Employment Practices Liability Insurance, Oregon Employment Practices Liability Insurance, Pennsylvania Employment Practices Liability Insurance, Texas Employment Practices Liability Insurance, Washington Employment Practices Liability Insurance.