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Employment Practices Liability

Employment Practices Insurance

The risk of an employment related claim is real and growing. The U.S. Equal Employment Opportunity Commission (EEOC) reports that discrimination claims reached the second highest level ever in 2009 as more than $376 million was awarded to employees. Continuing a decade-long trend, racial discrimination claims were the most frequently filed, followed by retaliation and gender. The EEOC warned employers it would continue to protect employees with enforcement and litigation.

Employment Practices Liability Insurance covers employment-related liabilities such as wrongful termination, discrimination, sexual harassment, and other alleged violations of employees’ legal rights. Although only three percent of Employment Practices lawsuits end in favor of the plaintiff, the average cost to defend yourself in one of these allegations is well over $40,000.

Many small to mid-size businesses do not have a dedicated Human Resources Department. As such, their records regarding employee performance may not be as well managed as they should be. Even large companies have Employment Practice exposures as they may lay off hundreds or thousands of people at a time. Anger about the loss of a job can encourage ex-employees to respond in a litigious way.

The good news is that the premium charged for this valuable coverage has become fairly reasonable in today’s insurance market. Talk with your Bilz representative about the risks and potential economic impact of doing nothing in regards to EPLI. Then ask for a quote for EPLI coverage.