Nelles Insurance Solutions

With so many cases of sexual harassment and discrimination in the news, it’s not surprising that more companies have purchased employment practices liability insurance (EPLI). EPLI protects employers from damages resulting from workplace-liability claims.  Nelles Insurance offers EPLI as a solution to defend against work-related lawsuits.

EPLI was first introduced in 1988

and for several years there was little interest in the new insurance. The Civil Rights Act amendments of 1991, however, has led to a huge increase in discrimination claims and thus also an explosion of interest in EPLI.

In the past few years, employers have become increasingly aware that they are legally responsible for their employees’ actions. Between 1990 and 1998, for example, the number of employment discrimination claims filed in federal court nearly tripled from 8,413 to 23,735. This, combined with the growing number of employment-related liability lawsuits, has driven the increased demand for EPLI, which is now offered by dozens of different insurers.

What EPLI Covers
EPLI covers defense costs, judgments and settlements (up to the policy limits) for the corporate entity, former and current employees, directors, and officers. It covers a variety of workplace-related legal actions, including:

• Discrimination
• Sexual harassment
• Wrongful termination

• Breach of employment contract
• Negligent evaluation
• Failure to employ or promote
• Wrongful discipline
• Deprivation of career opportunity
• Wrongful infliction of emotional distress
• Mismanagement of employee-benefits plans

EPLI policies do not cover workers’ compensation, bodily injury or property-damage cases, nor do they cover cases that another insurance policy specifically covers.

EPLI Premiums
EPLI rates vary from state to state and from company to company. Generally an insurer calculates premiums by determining the amount of coverage a business needs and its perceived risk. An insurer will base rates on several risk factors, including the number of employees at a company, the turnover ratio, whether or not the business has a human resources department, and any past harassment or bias suits against the company. Businesses with 10 to 20 employees that have good HR practices and a clean record can expect to pay approximately $1,500 a year for EPLI coverage.

Employers can lower their company’s liability exposure and keep insurance rates down by taking certain precautions:

• Don’t hire workers with histories of drug or alcohol abuse.
• Institute zero-tolerance policies toward workplace harassment, discrimination, and alcohol and drug abuse.
• Develop an employee-standards handbook that defines the skills and performance you expect for each position.
• Measure your employees’ performance on a regular basis.
• Discuss workplace liability with your insurer to see if your company should consider an EPLI policy.

Businesses that purchase EPLI coverage may actually reduce the likelihood of workplace harassment and discrimination. Insurers generally review a company to check for workplace liability before they issue a policy. And since insurers hate risk, they’ll usually recommend changes that reduce a business’s exposure to lawsuits. Many of the steps you can take to ward off harassment claims and meet the demands of insurers begin with basic education and setting up the right environment.

Contact Nelles Insurance Solutions, Inc today to see about adding this important coverage.

There is a very good chance that you are — this very moment — paying too much for your car insurance in Lynchburg. There is an even better chance that you could get a better rate, from another insurance company, than you could from your existing insurer.

So why not take an hour or so and review your policy for potential savings? Or, if you’re fed up with the high insurance rates from your current insurer, shop around for a new company.

You can save on auto insurance in five ways:

1. Make sure you get all discounts you qualify for
2. Keep your driver’s record clean and up-to-date
3. Adjust your coverage to assume more risk
4. Drive a “low profile” car equipped with certain money-saving safety features
5. Shop around for a good, low cost insurance provider

First, let’s look at the discounts you might qualify for. Discounts fall into a number of categories:

• Low-risk occupations
• Insurance financial score
• Professional organizations
• Combined coverage
• Discounts for safety features
• More risk assumed by driver
• Discounts for senior citizens

Low-Risk Occupations
Insurance is a numbers game. Adjustors collect information about what types of people get into accidents. Over the years they see a trend. Drivers that work as engineers tend to get into fewer accidents. Why? It would be fun to speculate about the reasons (pocket protectors — need we say more?) but the insurance companies don’t really care about that. All they know is that, in fact, engineers are a low risk. Since there is less chance that they will wrap their cars around the trunk of a horse chestnut tree, they charge engineers less for insurance.

But you say you are a teacher instead of an engineer? You might still be in luck. There may be discounts for teachers. You never know unless you ask — and unless you shop around. Not all insurance companies are the same.

Insurance Financial Score
What in the world is an insurance financial score?  How you handle your money can impact how much you pay on insurance. Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance score indicates, is a good predictor of insurance claims.  So think twice when you are asked to sign up for a Macy’s department store credit card to save 15% on your purchase.  Opening that credit card may cost you in the long run.

Professional Organizations and Auto Clubs
Have you ever been about to pay $100 for a hotel room, only to discover that a AAA discount saves you 15 percent? Now you’re paying $85 and feeling proud of yourself. It’s similar in the insurance business. Affiliation with AAA — and certain other professional organizations — may lower your rates. At the same time try checking directly with the insurance company representative when you inquire about the cost of policies.

Combined and Renewal Discounts
A big source of savings is to insure your cars with the same company that insures your house. Make sure you ask if combined coverage is available. This will lower your payments on your car insurance and make your homeowner’s policy cheaper too.

It’s also important to make sure you are getting a “renewal” discount that many car insurance companies offer. This is a discount given to people who have been with the same insurance company for an extended period of time. A renewal discount is a good incentive to urge you to return. And it’s a good reason for you to stay with them.

Discounts for Auto Safety Features
Auto safety features will also lower your payments. Heading the list of money saving safety features is antilock brakes.  Automatic seatbelts and airbags are also frequently rewarded with insurance discounts.

Assume More Risk
Two powerful ways to bring your coverage down is to assume a higher risk. This is done in two ways. The most dramatic reduction can be realized by dropping your collision insurance on an older car. If the car is worth less than $2,000, you’ll probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you?

Another way to redesign your policy — and save money in the process — is to ask for a higher deductible. The deductible is the amount of money you have to pay before your insurance company begins paying the rest. In other words, you pay for the little dings and bumps and let your insurance company pay for the heavy hits.

For example, a common deductible amount is $500. This means if an accident you’re in causes $1,500 worth of damage, you pay $500 and the insurance company pays $1,000. You could, however, set your deductible to $1,000. This still covers you against heavy losses, but it may decrease your monthly premium by as much as 30 percent.

As a final note, if you are being strangled by high insurance costs, keep this in mind when you go car shopping next time. The more expensive and higher-performance the car is, the higher the premium will be. This is particularly true of cars that are frequently stolen, or are expensive to repair. The insurance company keeps this in mind when setting its insurance rates for this vehicle. Shop for a low-profile car and get your kicks in other ways. You’ll love the savings you’ll see on your auto insurance.

These are just a few ways to save.  Contact Nelles Insurance Solutions, Inc today for more ways to get the most insurance bang for your buck and avoid throwing money down the drain.  Nelles Insurance is conveniently located in Lynchburg, VA.