Employers constantly face workforce risks and challenges in the fast-paced hospitality industry. Employment liability issues, such as wrongful termination, harassment, discrimination, and wage disputes, can quickly escalate into expensive legal battles.
While most industries experience 10-15% turnover every year, it’s estimated that the hospitality industry faces 70-80% annual turnover. With a high number of employees joining and leaving hospitality jobs, understanding and leveraging employment liability insurance is essential.
Employment liability insurance, commonly known as Employment Practices Liability Insurance (EPLI), is a specialized coverage designed to protect employers from legal claims made by employees or former employees.
These claims can include allegations of discrimination, harassment, wrongful termination, and other employment-related issues. EPLI is essential for the hospitality industry, where interactions between employees and guests are frequent, and potential legal risks are higher.
EPLI policies generally cover various employment-related claims, including:
The hospitality industry is particularly vulnerable to employment liability claims for many reasons, including:
Staying ahead of ever-evolving employment laws is a challenge (and something your employment lawyer should keep you up-to-date on). New laws mean new risks, and you need to ensure your policy covers any legal updates.
Colorado made several significant employment law changes last year, including:
As employees and employers navigate these new laws, issues will arise – and that could lead to litigation.
EPLI policies can be tailored to meet the specific needs of hospitality employers, and our team is here to help. We can create an insurance strategy that meets your needs and protects your business from employment-related issues.
Customized coverage is an essential step in ensuring your business is adequately protected, so reach out to CCIG at any time. We can have a conversation about your needs and structure a plan that covers you today and in the future. Reach out to Kevin at email@example.com