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:
· Wrongful termination
· Breach of employment contract
· 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.