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Why Your Business Needs Employment Practice Liability Insurance


An Employment Liability Update

If you have employees, you are at risk for employment liability claims.  Legislation such as the Family Medical Leave Act and the Americans With Disabilities Act, plus a growing number of job-related lawsuits and claims, have created the need for business owners to consider a type of insurance known as Employment Practices Liability Insurance, or EPLI.  A normal commercial insurance policy may not cover this risk, so it pays to have us complete a review of your insurance coverage.

An Employment Practice Liability Insurance policy offers insurance protection against claims and lawsuits that are brought against a business, its officers or directors, or its employees and managers.

Claims can be broken down into the following categories:

  • Harassment
  • Wrongful termination
  • Breach of employment contract
  • Discrimination
  • Invasion of privacy
  • Compensation issues
  • Employee benefits administration

Employers need to protect themselves from possible litigation. An EPLI policy can provide that added protection.

Ten Reasons to Have EPLI Coverage

  • General liability policies do not cover this exposure.
  • Wage and hour claims have tripled since 1997.
  • Over 60% of claims come from former employees.
  • Forty percent of claims involve firms with 50 employees or less.
  • The average cost to defend an EPLI claim is $150,000.
  • Forty seven percent of verdicts are between $100,000 and $500,000.
  • The EEOC recorded over 73,600 complaints in 2015.
  • Claims can come from vendors and even clients.
  • The financial ramifications can cripple your firm.
  • Coverage is very affordable and easy to obtain.
  • Established in 1981, we are dedicated to providing excellent service and competitive pricing but most importantly, professional analysis of the insurance needs of our clients. Our state of the art computer network allows us to make rate comparisons with several insurance companies to ensure that our clients receive the best we have to offer. We can help you with all your insurance needs.