Restaurant Insurance: Employment Practices Liability


restaurant insurance One of most commonly neglected coverage options in restaurant insurance policies is employment practices liability (EPL). EPL insurance covers organizations for an extensive range of employment related claims including: harassment, discriminatory claims of all kinds, and wrongful termination to name a few.

Claims and charges of this kind have increased significantly over the last five years. In the past three years the EEOC has reported just under 300,000 discrimination charges nationally. Some of the charges were discrimination because of race, religion, sex, age, and disability. In 2012 alone, Texas had significantly more discrimination charges than any other state.

With this kind of exposure growing at such a rapid rate, why are some restaurant owners continuing to neglect EPL coverage? The cost in premium for EPL coverage is minuscule when compared to the cost of one legal bill to repair the damage done by opting out of EPL insurance in the first place.

Ogletree Deakins Shareholder Alicia Voltmer, who represents employers in employment and labor matters, reports that, over the past twelve months, she has seen a significant increase in Family and Medical Leave Act and disability claims, as well as retaliation claims.  Defense costs in single-plaintiff cases can, and often do, exceed $100,000.

No one can anticipate these types of claims, and even if the claim is frivolous in nature, it is important to that restaurant owners protect their business from the financial devastation that EPL claims can cause.

Common Restaurant EPL Insurance Coverages:

  • Retaliation
  • Emotional Distress
  • Humiliation
  • Defamation
  • Hostile Work Environment
  • Wrongful Termination
  • Wage an Hour
  • Sexual Harassment
  • Discrimination claimed of terminated employees based upon race, age, gender, or religion

Because restaurants are extremely consumer-centric, they are often susceptible to third-party claims. Endorsements can be added to and EPL policy to cover any and all allegations made by customers who contend that restaurant staff has acted unlawfully towards them. This type of claim is generally on the grounds of some kind of discrimination or harassment.

Swingle Collins is committed to making sure their clients are aware of the exposures their business is subject to as well as ensuring that they are addressed and covered properly. Our agents will review your policies as part of a complimentary consultation to make absolutely certain that the right coverages are implemented as well as identify gaps in current coverage

Swingle, Collins & Associates specializes in restaurant insurance coverage The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for EPLI insurance for restaurant, or employment practices insurance for restaurants please contact your dedicated risk manager to discuss the benefits and services of personal homeowners insurance coverage.

The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.