One of the most important things when running a moving business is having the right type of insurance. And when it comes to insurance policies, one type of insurance proved to be particularly important – Employment Practices Liability Insurance (EPLI). You might be running your business fair and treat your employees well. However, you will be surprised to hear how often moving companies encounter claims filed against them by their employees. One or two such claims and you could be out of business. To better understand EPLI, Verified Movers prepared a detailed explanation that you can find below.
Claims filed by employees are quite often in the moving industry
It is clear that every moving company should have some type of insurance that will protect it from claims filed against them by customers. Moving business is risky, lost and broken items, damaged properties, missed schedules, and similar things are a part of the job. However, claims filed by customers are not the only thing that threatens an average moving company. Employees file claims against moving companies quite often as well. And if you are running a moving business for at least a couple of years, the chances are that you have already faced a suit from one of your employees. If you didn’t have EPLI coverage, you probably had a large settlement to cover.
An average settlement, by the way, costs $160,000 and takes 320 days to resolve. That is why, when starting a moving company from scratch one of the most important things is to have the right type of insurance.
The chances of getting sued by your employee are pretty high, especially if your business is located in California or New Mexico
It is estimated that moving companies in the US face a 10% chance of facing a claim filed against them by their employee. In New Mexico and California in particular, the chances are 50%. That is why most moving companies in those states have this type of insurance. Top movers in Washington DC, for example, are also covered in great numbers. Nevertheless, it seems like there are still many moving companies in the country that either does not take this problem seriously or do not understand EPLI properly.
That is sad, especially because the cost of a lawsuit can be pretty high, and getting the Employment Practices Liability Insurance (EPLI) is easy and not that expensive at all. All the best insurance companies that deal with movers offer EPLI. And the average cost of EPLI ranges between $750 and $5,000 in annual premium. Small businesses usually get it for $1,200 per year. However, if you already have an insurance policy installed some insurance companies offer EPLI endorsements that you can add to your existing policy for as low as $300 per year. The cost mostly depends on the type of EPLI you are getting and how much coverage it provides. However, those are not the only factors that will affect the price of your insurance.
What determines the cost of Employment Practices Liability Insurance?
Many factors affect the price of EPLI. Of course, the extent of coverage you want to take plays a big role. However, the insurance company will also consider the number and types of employees you have and employee turnover history. They will also check your claims history and hiring and firing procedures. As well as documentation of employee training and conduct. Naturally, the cost of insurance also varies by state. So for example, top Seattle movers will have a different price than, let’s say, movers in NYC. Still, the type of insurance remains most important.
Employees sue moving companies for a variety of reasons
Employment Practices Liability Insurance (EPLI) for moving companies can vary a lot. Also, different moving insurance providers offer different types of coverage. Still, in most cases, it will protect you from getting sued for defamation, different types of discrimination, wrongful termination, sexual harassment, invasion of privacy, and various types of work and career-related legal action. Good policies, however, will offer even more protection. Of course, you cannot see into the future and predict what types of problems you will encounter in the future.
There are many insurance companies that provide this type of coverage for movers
Most insurance providers offer Employment Practices Liability Insurance (EPLI). If you already have some type of commercial coverage, the best thing would be to check with your insurance company whether they offer EPLI endorsements. This might be the best and fastest way to get it all done. Additionally, you can check with other insurance providers in your vicinity and see what they have to offer.
You worked hard to get here don’t let it slip away
Moving companies are not legally required to have an insurance policy. Therefore having an Employment Practices Liability Insurance (EPLI) is also not mandatory. Every moving business can operate without it. That is just, how moving companies are regulated. However, if you want to be covered from all sides understanding EPLI and getting for your business can prove to be crucial. Especially today, when so many moving companies are closing down. Just remembers how hard you worked to get here. You don’t want all to be ruined by some unnecessary claim. That is why we strongly suggest that you consider getting EPLI for your moving company.