Wrongful termination… Sexual harassment… Discrimination… In today's litigious society, employers need to be prepared to protect themselves from employment-related claims and lawsuits. Recent years have seen an increase in charges brought against companies by current or former full-time, part-time, and seasonal employees.
A simple accusation by an employee can start the clock ticking on the expensive task of defending an employment-related wrongful act allegation. And, the 81 percent of claims that are settled in arbitration or in administrative hearings cost employers $22,000 to $40,000 on average. Even those claims that are settled immediately cost a Company an average of $7,500.
That's a hard nut to swallow for any commercial operation. Enter Employment Practices Liability Insurance (EPLI). EPLI helps protect small companies against the liability damages and defense costs brought by employees who allege employment-related wrongful acts.
As part of our EPLI coverage, we offer Employer Protection as an online resource to help you manage your employment risks by taking steps to avoid situations that may lead to litigation. We understand that small businesses don't have the resources to protect themselves from employment practices lawsuits.
EPLI provides protection against state and federal employment-related claims, including cost of defense, such as:
- Sexual harassment
- Discrimination
- Wrongful termination
- Breach of contract
- Negligent evaluations
- Failure to promote
- Wrongful discipline
- Infliction of emotional distress
We can help you obtain Employer Practices Liability Insurance (EPLI) to protect your business from claims by employees, former employees, or candidates for employment.
EPLI: For Companies of All Sizes
The number of lawsuits filed in Indiana by employees against their employers has been rising and judgments awarded to plaintiffs have been increasing.
While most suits are filed against large corporations, no company is immune to such lawsuits.
EPLI policies can be written whether you have other liability coverage in force or not.
EPLI: Protects Against Employees' Litigious Nature
EPLI, a relatively new product in the insurance market, protects your company from liabilities not covered under general liability policies.
Very few employers currently carry EPLI even though statistics show that businesses are more likely to face an employment claim than a property or general liability claim.
EPLI: One Claim Can Have a Devastating Effect
Employers today don’t equate the benefit of an EPLI policy to its cost. While EPLI coverage can be expensive, potentialdamages arising from an employee claim can be devastating to the bottom line.
Historically, an EP claim can settle at $40,000-$100,000, if it doesn’t go to court!
If the case does goes to court, damages awarded by the court average over $200,000, with as many as 10% of wrongful termination suits resulting in damage awards of over $1 Million.
The cost for employers to defend themselves can exceed $45,000 for a single claim.
EPLI typically covers most of the damages that a business faces in an employment lawsuit, including:
- Back pay
- Attorneys' fees
- Compensatory damages
- Front pay
EPLI: Employee Training Can Reduce Liability
We can even arrange for employee training and educational information to help lessen your liability profile.
In addition to providing coverage if there is a claim, some EPLI carriers will provide or help pay for employment practices training, which hopefully reduces your chances of getting sued in the first place.
Please Contact Jason Shroot at 714-98-3325 or Visit www.jasonsellsinsurance.com
