The Insurance Every Restaurant Should Have and No One Knows About

Owning and operating a business is a liability.  One you should take seriously.  Depending on which state or country your business is located in the risks, laws and policies vary.  There are several types of insurance you are legally required to carry such as General Liability but what type of insurance can protect you against employee lawsuits for sexual harassment or unpaid overtime?

The answer… Employment Practices Liability Insurance or EPL Insurance.

EPLI is “a type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment, and retaliation. In addition, the policies cover claims from a variety of other types of inappropriate workplace conduct, including (but not limited to) employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, wage and hour law violations, and negligent evaluation.”- www.IRMI.com

“There are three times as many reported incidences of sexual harassment in the restaurant industry than there are among manufacturing and healthcare employees.” -www.insider.com.  Even with the best intent and management systems you need protection.  EPL insurance will not just cover you but also company directors, officers, management personnel and employees.

Contact your local insurance agent to get the details of what your current coverage provides and what adding an EPLI policy will add for protection.  “Like most kinds of professional liability insurance, EPL insurance policies operate on a claims-made basis.”[10] https://en.wikipedia.org/wiki/Employment_practices_liability.  This means that policyholders can only receive insurance benefits if they are covered both at the time of the discrimination incident that triggered the claim and at the time when the claim is filed.

The cost of insuring your business for EPLI coverage depends on a variety of factors, such as:
  • The number of people you employ
  • Whether you’ve had prior suits lodged against your company
  • The percentage of employee turnover (CheddrSuite.com reduces employee turnover contact us to see how)
  • Whether you have established rules and practices in place  (CheddrSuite.com has document storage and e-sign functionality to help keep you compliant)

We understand that it is good business to find ways to reduce expenses but the absence of this policy with the expansion of privacy laws and increased frequency of sexual harassment law suits against national restaurant brands in the news you can’t afford to not protect yourself and your company.

Cheddrsuite.com will not only help you run a more efficient and profitable restaurant but we can help keep you compliant.  Get a free demo today!

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