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Employment Practices Liability Insurance (EPLI)

Don’t let an off-handed comment ruin your business.  Employment Practices Liability Insurance can save your business.

Employment Related Practices Liability Insurance, commonly referred to as EPLI coverage, is a relatively new coverage but is a coverage that any business that has employees must carry.  If you have a policy that is over 5 years old you might now have this coverage and your old policy is obsolete.

Imagine an employee uses his office computer to send a joke to a co-worker that has a sexual connotation.  Instead of the employee just sending the joke to his friend, he hit reply all and sent it to all members of the staff.  A female employee receives the email and is offended and humiliated by the joke.  She then files suit against the employer for creating a hostile work environment.  Will your current insurance coverage defend you in this lawsuit?

Not unless you have Employment Practices Liability Insurance (EPLI) coverage.  For most occupations  this coverage can be endorsed to your liability insurance policy, but for other occupations it must be a separate insurance policy.

Common Employee/Employer lawsuits include:

  • Sexual Harassment
  • Hostile work environment
  • Discrimination
  • Unfair hiring practices
  • Retaliation
  • Wrongful termination
  • Wage and Hour disputes

The average cost of defense of an EPL claim is $150,000.  The average jury award if the case goes to verdict is $325,000 per the Equal Employment Opportunity Commission.

Neither your general liability nor workers compensation policies provide defense or awards issued in Employment Practices claims.  The only way to have legal defense or coverage for these claims is to have an Employment Practices Insurance policy or an endorsement to your policy for this coverage.

Who has Employment Practices Liability Insurance Claims?

Per the Equal Employment Opportunity Commission (EEOC)

  • A private company is more likely to have an EPLI claim than a general liability or property insurance claim.
  • 3 out of 5 employers are sued by former employees.
  • 65% of all companies that have ever fired an employee have had a related lawsuit.
  • The median compensatory award for all plaintiff verdicts has risen to $325,000.  In 2005 it was $250,000.
  • Over 40% of all employment practices liability insurance claims are brought against firms with less than 100 employees.

The figures do not include attorney fees. Which the average cost for defense is between $45,000-115,000 depending on the type of claim.  You do not have to do anything wrong to be sued.  All that needs to happen is for some to accuse you of doing something wrong to start accumulating the attorney’s fees.  The EPLI policy will defend you against these false accusations as well.

The cost of Employment Practices Liability Insurance Coverage has been decreasing over the past 10 years and now the coverage is more affordable then ever?  Don’t wait any longer.  If you have employees you have a need for this coverage.

Here are two reasons to get started right now!

  1. Don’t wait any longer to make sure that you have a great EPLI policy and that you are saving as much money as possible.
  2. Get a no-risk proposal today to find out how affordable EPLI can be. Simply fill out the short form above.  We’ll get back to you within a day with a personalized  Employment Practices Liability Insurance proposal.