Employment Practices Liability Insurance (EPLI) is an important insurance coverage that helps protect businesses against lawsuits arising from accusations of harassment, discrimination and wrongful termination.
And the truth is – even if you think the risk is small – all business owners need to speak with their insurance agent about EPLI insurance because even wrongful accusations can be costly to defend.
Read on to learn why businesses of all sizes are choosing to add EPLI coverage to their business insurance for employment related claims.
Why do businesses need employment practices liability insurance?
Unfortunately, the number of employee lawsuits has been growing and they are getting more expensive. In the last 10 years, employee filings with the Equal Employment Opportunity Commission (EEOC) increased by more than 20%. The average employee-related settlement now costs almost $70,000.
Big or small – all companies face risk.
Small businesses may feel like they have more oversight and control over their employees’ behavior. But the truth is that, big or small, companies of every size face this risk. In fact, over 40% of all EPLI claims are made against private employers with fewer than 100 employees. No matter if your company is big or small, employment practices liability is always a risk. An EPLI policy can help minimize business disruptions.
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You can be fault-free, but it still costs money.
Even if your company is without fault, it will still cost legal fees and defense costs, which can exceed tens of thousands of dollars. With employment practices liability coverage, you can help protect your business’s finances and avoid the possibility of having to close your doors due to an expensive lawsuit.
Your business insurance policy is probably missing this coverage.
Think your commercial liability policy has you covered in an employment related claim? Think again. Many commercial liability insurance policies can exclude claims that involve employer-to-employee and employee-to-customer behavior. Your commercial umbrella policy may exclude them as well.
EPLI coverage is available to protect businesses for both first-party (employment-related) and third-party (customer and vendor) lawsuits involving such issues as harassment or discrimination.
To be safe, contact your independent insurance agent and make sure your business has the right coverage in place to protect you from lawsuits stemming from these types of accusations.
3 ways an EPLI policy can aid your business
Are you still on the fence about getting employment practices liability insurance for your business? Consider these three ways an EPLI policy can help you:
- If a former employee sues you for wrongful termination, you can get assistance with legal protection and legal costs in the case of a lawsuit.
- If an employee is accused of sexual harassment while on the job, EPLI will cover the costs of the claim and legal expenses.
- If a customer or employee sues you for discrimination, this coverage can offer legal help and financial assistance for attorney fees.
EPLI covers everyone at the company from directors to middle management to employees. Choose an EPLI policy to give your business and employees added protection in the case of a lawsuit.
Grange’s employment practices liability coverage
Choose an experienced, independent Grange agent to help you get the right EPLI policy. You can expect free legal counsel, risk management training, first-party coverage and third-party coverage. Talk to a Grange agent today to learn more.
Coverages described herein may not be available in all states. Please contact a local independent Grange agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational and/or suggestion purposes only, and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan* and Grange Property & Casualty Insurance Company*. *Not licensed in Pennsylvania
References:
Teamais
Forbes
Insurance Information Institute (III)