Employee claims of discrimination, wrongful termination, retaliation and more can be costly to a restaurant’s bottom line. To address these issues, ProHost USA rounds out its restaurant package with an employment practices liability insurance endorsement.
PRODUCT: Endorsement to restaurant package program
COMPANY: ProHost USA, underwritten by XL Catlin
BEST RATING: A (Excellent), Size XV
AVAILABILITY: Coverage is available through independent agents and brokers.
FOCUS: Employee claims of discrimination, wrongful termination, retaliation and more can be costly to a restaurant’s bottom line. To address these issues, ProHost USA rounds out its restaurant package with an employment practices liability insurance endorsement that includes free access to an attorney’s advice.
“EPLI is a real exposure for restaurants,” says Heidi Strommen, president of ProHost USA, which has specialized in restaurants and hospitality since its founding in 1989. The EPLI endorsement provides protection as well as resources to prevent a claim from ever happening.
“If a small business doesn’t have a full-time HR director, nor an attorney they can call at any time for advice, this endorsement gives them that resource,” Strommen says. “Before they let someone go, they can call our legal advice line and speak to an experienced attorney—one that is well-versed in federal and state employment law—to make sure they handle it correctly.”
As part of the policy, that attorney will provide general counsel on a range of employment issues, including the legal implications of decisions or actions the employer is considering. The restaurant package with the EPLI endorsement gives independent agents and brokers a more complete product to sell to a restaurant, Strommen says: “They can bring something to the table that is more comprehensive than one that doesn’t include EPLI.”
Policyholders who purchase the coverage will also gain access to an easy‐to‐use website that provides important resources for claim prevention, including a model employee handbook, best employment practices checklist and library of employment-related articles.
UNDERWRITING: To be eligible for the endorsement, a restaurant must have five or fewer locations. The endorsement limit is $100,000.
The endorsement also offers third-party sexual harassment coverage. “This is important for a business like a restaurant where employees have significant contact with the public,” Strommen points out. “A claim by a customer who alleges that their server was sexually harassing them would also be covered.”
There is no separate application for the EPLI endorsement because it is automatically included in ProHost’s package program for restaurants.
MINIMUM PREMIUM: None.
TARGET: ProHost targets smaller to midsize restaurants that do not carry a standalone EPLI policy. The ideal customer is a locally owned fast-casual, family or fine-dining restaurant with at least $500,000 in annual revenues. ProHost defines “fast casual” as a restaurant that doesn’t offer table service, but offers a higher quality of food and atmosphere than a fast-food establishment.
COVERAGE TERRITORY: The EPLI endorsement is available in all U.S. states except AK, AL, AR, LA and MT.
CONTACT: Kim Connell, business development; ProHost USA, 4500 Park Glen Road, #410, St. Louis Park, MN 55416; 952-924-6924.
Ronimarie Acord is an IA contributor.
