Philip has always tried to treat his daycare staff fairly and run a professional place. He understands that Austin is a highly competitive employment environment and tries to limit his staff turnover to create a great environment for the families that bring their kiddos into his child care center everyday.
He was shocked when one of his employees said he had harassed her one day. He didn’t think he had done anything wrong. But now, he was facing a serious problem and wasn’t sure what to do next.
He looked at his daycare business insurance policy and realized it didn’t cover this kind of claim. He had never really thought he would need this coverage option. The lack of coverage made him nervous. Legal expenses can be expensive, and just defending himself could cost tens of thousands of dollars.
Philip’s story is not rare and becoming more common all the time. Many daycare owners don’t think about this kind of risk until it happens to them. That’s why it’s important to talk about something called Employment Practices Liability Insurance, or EPLI for short.
Wrongful Termination Can Lead to Big Legal Costs
Philip's harassment story is scary, but have you ever worried about needing to let an employee go? Even if you feel you have a good reason to let someone go, that person might not agree. They might think they were fired unfairly. Or maybe they feel like you acted out of anger or bias. If they file a lawsuit, your daycare will need to hire a lawyer to defend itself. And let's be real. It doesn't even have to be true for them to find a lawyer to file a suit against you.
Fortunately, Philip had never had to fire anyone before. But as he learned more about EPLI, he was scared that if he ever did need to fire someone it might lead to a claim. With EPLI, you don’t have to face these situations alone. This additional coverage to your business insurance coverage will help pay for legal fees and any settlements or judgements that come from a wrongful termination claim.
Discrimination and Harassment Claims Are Hard to Navigate Alone
Philip’s case was about harassment, but he also learned that daycares can face claims of discrimination too. An employee might say they were treated differently because of their race, age, religion, or something else. We now live in a society where feelings don't always align with reality and then your daycare center is accused of something.
Even if the daycare has done nothing wrong, it still has to go through the legal process. That takes time and money. Having adequate coverage can help provide financial protection in this moment. Philip wished he had EPLI coverage at the time of the accusation. He could have had legal help right away instead of trying to figure everything out on his own.
Wage and Hour Disputes Can Get Complicated
If you are anything like Philip, your mind probably goes into overdrive when something like this happens to you. He then started thinking about how his daycare handled things like overtime pay and lunch breaks. He realized that even small mix-ups were a potential risk to turn into big problems. An employee might say they worked more hours than they were paid for. Or they might say they weren’t given proper breaks.
These kinds of claims are common, but hard to sort out. Many of them are "he said - she said" scenarios. Without clear records and proper legal help, they can become stressful fast. EPLI helps daycare business owners handle these types of disputes before they grow into something much bigger that can create a financial burden for your future.
This Coverage Also Protects You Personally
As Philip learned more, he found out that EPLI doesn’t just protect the daycare business, it also protects individual people like him. Owners, directors, and managers can be named in lawsuits. If that happens, their personal money and property could be at risk.
Philip had worked hard to build his childcare business. He didn’t want to lose it because of one frivolous claim. Having EPLI coverage for business activities would give him peace of mind knowing that he and his staff were protected.
Work with Someone Who Understands Daycare Insurance
Philip didn’t know about EPLI when he started his daycare. But now, he wishes he had worked with someone who did. He reached out to Insurance For Texans and learned about True Texas Education Insurance. They explained how EPLI works for daycare business owners and helped him add it to his daycare insurance package.
The specialized insurance agents at Insurance For Texans started by asking him questions to understand his business operations, and then customized daycare insurance policies to cover his needs. Now Philip feels more confident about his liability insurance coverage. He knows he has help if something unexpected happens again. He doesn’t have to figure it all out on his own.
Click the button below to talk with a daycare insurance specialist who can help you find the protection your business needs.