The beauty of running a business in South Carolina is that you can easily access the resources and assistance needed to protect your business from potential legal liability.

One of these resources is Employment Practices Liability Insurance (EPLI). This type of insurance helps to cover business owners and their employees against claims brought by employees or former employees alleging wrongful termination, discrimination, sexual harassment, and other related employment issues.

It’s important to note that EPLI coverage is not an alternative to a comprehensive human resources program. It’s designed to supplement an existing human resources program and provide additional protection from legal claims.

South Carolina Employment Practices Liability Insurance Cost

Small businesses in South Carolina pay around $222 per month or $2,665 per year for employment practices liability insurance.

The number of employees in a business will affect the EPLI cost because a larger workforce means more potential cases that could be brought against the business. Revenue has an effect too as larger businesses tend to have more resources and assets that could be targeted in a legal claim.

Industry is another factor that affects the cost of EPLI coverage as some industries are at higher risk than others (such as hospitality, healthcare, and education). Additionally, hiring and termination practices can make a significant difference in the cost of EPLI insurance as certain practices can increase the risk of legal action.

Employee turnover rate is also a factor, as businesses with high rates of employee churn tend to be at higher risk for claims. Finally, past EPLI claims history and overall risk profile are used to determine the cost of coverage. For instance, if you’ve experienced past claims, you may be subject to higher premiums.

We Have the Best EPLI Policies In South Carolina

Southern Insurance Group is a leading commercial insurance agency in South Carolina. We understand the unique needs of businesses in our state, and we have access to some of the best Employment Practices Liability Insurance policies available.

We’ll help you find a policy that fits your budget while providing comprehensive protection for your business against potential legal liability. We’ll also work with you to develop a human resources program that meets the needs of your business and helps protect you against claims.

Contact us today to get started on finding the perfect EPLI policy for your business in South Carolina. Our team is here to help!

Thank you for choosing Southern Insurance Group. We look forward to working with you!

Who Needs Employment Practices Liability Insurance in South Carolina?

Businesses of all sizes should consider purchasing EPLI coverage in South Carolina. This list includes, but is not limited to:

Manufacturers and distributors
Retailers and wholesalers
Restaurants/hospitality establishments
Healthcare providers
Financial services companies
Real estate firms
Non-profit organizations
Technology companies
Educational institutions
Construction companies
Transportation companies
Professional services firms
Business consultants
Law firms
Advertising and marketing agencies

Any business with employees in South Carolina should consider purchasing EPLI coverage.

What Does South Carolina Employment Practices Liability Insurance Cover?

EPLI coverage typically provides protection from claims related to:

Discrimination based on age, race, gender, religion, national origin, and disability
Sexual harassment or other hostile work environment issues
Wrongful termination or constructive dismissal
Breach of contract or wrongful discipline
Retaliation claims - Failure to promote or provide equal pay
Negligent hiring, training, or supervision of employees
Breach of implied covenant of good faith and fair dealing
Negligent infliction of emotional distress
Wrongful failure to employ or promote
Sexual orientation discrimination claims
Fraud or misrepresentation
Emotional distress damages
Wrongful deprivation of a career opportunity
Defamation or slander claims
Invasion of privacy claims
Punitive or exemplary damages.

Employee Practices Liability Insurance in South Carolina may also provide coverage for:

Defense costs and settlement expenses incurred in the event of a claim
Pre-judgment interest
Reimbursement of punitive or exemplary damages
Pre- and post-verdict interest
Coverage for non-monetary judgments
Defense of criminal prosecutions arising from wrongful acts and civil penalties
Coverage for class action lawsuits.

It is important to note that not all policies offer the same coverage, so it is important to read the policy documents carefully and understand exactly what is included.

What is Not Covered By South Carolina EPLI Insurance?

Employment Practices Liability Insurance policies typically do not cover:

Intentional acts or dishonest conduct
Bodily injury caused by employee negligence
Worker’s compensation claims
ERISA violations
Employee benefit plan violations
Securities claims
Violations of federal or state securities laws and regulations.

Some policies may also exclude coverage for:

Losses caused by an employee's breach of fiduciary duty
Fraudulent misrepresentation of qualifications
Negligent misrepresentation of financial information
Willful violation of the law
Misuse or misappropriation of funds or property
Dishonest acts by an employee.

It is important to read the policy documents carefully and understand what is and what is not covered by an Employment Practices Liability Insurance policy.

The Cost of Not Having Employment Practices Liability Insurance in South Carolina

The average legal costs of defending an employment practices lawsuit can be extremely expensive and can put a significant financial strain on small business owners.

For example, in cases of wrongful termination, the average cost to defend a case is estimated at $5,000 to $100,000. If a company loses the case, it can be liable for damages that are much higher than the cost of an EPLI policy.

Discrimination and harassment cases can be even more expensive to defend. Some cases have been known to cost businesses hundreds of thousands of dollars in legal fees and damages.

By purchasing South Carolina Employment Practices Liability Insurance, businesses can protect themselves and their employees from the financial consequences of a wrongful termination or discrimination lawsuit.

In addition to providing protection from legal costs and damages, EPLI can also help protect a company’s reputation.

Employment Practices Liability Insurance vs. General Liability Insurance

While EPLI and general liability insurance may both be able to provide financial protection to businesses, they are two distinct types of coverage.

General liability insurance is designed to protect businesses from third-party claims such as property damage and personal injury. It does not provide coverage for employment practices or discrimination lawsuits, which are typically covered by EPLI.

Another key difference between the two types of policies is that general liability insurance typically has a much lower premium than EPLI.

Ways to Save Money on South Carolina EPLI Insurance

Create an Employee Handbook Outlining Conduct Rules – Having a comprehensive employee handbook outlining the rules of conduct is essential for any business in South Carolina. It can help prevent disputes that could lead to costly employment practices lawsuits.
Provide Employer-Sponsored Training – Providing employees with training sessions on the rules of conduct outlined in the employee handbook can help ensure that all employees are aware of their responsibilities.
Incorporate Anti-Discrimination Policies – Having policies in place that prohibit discrimination and harassment can help reduce the risk of costly lawsuits.
Conduct Regular Performance Reviews – By conducting regular performance reviews, businesses can ensure that employees are aware of any issues they need to address and can take corrective action if necessary.
Implement a Fair and Reasonable Grievance Process – Having a fair and reasonable grievance process in place can help resolve disputes quickly and efficiently.
Regularly Update Policies – Regularly updating policies and procedures to ensure they are in line with current laws can help prevent costly lawsuits.
Ensure Compliance with State and Federal Laws – It is important for businesses to make sure that their policies comply with both state and federal laws.
Consult With an Experienced Employment Lawyer – Consulting with an experienced employment lawyer can help businesses identify potential problems and develop strategies to avoid costly lawsuits.
Conduct Background Checks on Employees – Conducting background checks on prospective employees can help reduce the risk of hiring someone with a bad work record who could lead to costly employment practices lawsuits.
Develop an Exit Interview Protocol – Having a protocol in place for conducting exit interviews can help ensure that departing employees are treated fairly and do not have any complaints that could lead to a lawsuit.
Create an Open-Door Policy – Encouraging employees to discuss any issues they have with managers in an open and honest way can help prevent costly disputes from escalating.

Compare South Carolina Employment Practices Liability Insurance Quotes

Comparing quotes from different insurers can help businesses find the best coverage at the most affordable price. Here at Southern Insurance Group, we make it easy to compare quotes from trusted providers. We can help you find the right EPLI policy for your business at the best price. Contact us today to get started!