Top Ten Reasons Why YOUR Business Needs Employment Practices Liability Insurance (EPLI)!

September 23, 2013 | Written by Jerry Nicklow

Top Ten Reasons Why YOUR Business Needs Employment Practices Liability Insurance (EPLI)!

1. Employment Practices Liability Insurance (EPLI) covers not only actual but also ALLEGED acts of discrimination, harassment, retaliation, wrongful termination and other similar acts.  The cost to defend an ALLEGED act could run into the tens of thousands of dollars.  This is a cost that you would incur, even though you did nothing wrong!
2. 3 out of 5 employers are sued by former employees every year.
3. Over 40% of all EPL Insurance claims are against firms with fewer than 100 employees.  So small businesses are not immune.  If you have ANY employees other than yourself, you business needs EPL Insurance coverage.
4. Some federal and state employment laws apply to all employers, regardless of number of employees.  Any size company has an exposure!
5. The Equal Employment Opportunity Commission (EEOC) recorded nearly 100,000 charges in 2010 and procured more than $417 Million in settlements for claimants.
6. The financial ramifications of not having EPL Insurance can be crippling, especially for a small business because they do not have the resources to handle the defense costs, which can run into the tens of thousands of dollars, let alone the settlements or judgments of an uninsured accusation.
7. The median cost of an EEOC lawsuit in 2010 exceeded $270,000!
8. There is no EPL Insurance coverage under other insurance policies such as General Liability Insurance (GL).  Any endorsement to another policy generally provides insufficient limits and does not provide the scope coverage of a separate EPL Insurance policy and erodes the limits available for the GL exposure.
9. Since 1997, wage and hour litigation has tripled.  More wage and hour collective or class actions have been filed in recent years than any other types of employment class actions combined.
10. Recent Supreme court decisions have lowered the standard of what constitutes retaliatory treatment.  Retaliation now accounts for more than one third of all EEOC charges.

Conclusion:

So if you own a business with ANY employees, you need to give Huff Insurance a call to discuss this important EPL Insurance coverage.  Without it, your business could be crippled with just an accusation of an improper action.

We had a client who was accused of and sued for harassment a few years ago and the defense cost alone was over $100,000.  Does your business have $100,000 in cash to defend an accusation of wrongdoing?

Huff Insurance

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance products. Call us at 410-647-111