Employment Practices Liability Insurance
Employment Practices Liability Insurance (EPLI), covers wrongful acts arising from the employment process. The most frequent types of claims covered under EPLI are:
- Wrongful termination
- Sexual harassment
- Invasion of privacy
- Failure to promote
- Deprivation of a career opportunity
- Negligent evaluation
This coverage is not covered on your normal general liability policy unless added by endorsement, but is more important than ever in today’s workplace culture.
According to Sara East's Employment Practices Liability Insurance (Even Good Employers Get Sued: The Cost of Not Having EPLI Insurance):
"Over the last 20 years, employee lawsuits have risen roughly 400%, with wrongful termination suits jumping up more than 260%. Oddly enough, you are more likely to be sued by an employee these days than to have a fire at your facility. It’s not just large corporations that are being hit. Roughly 41.5% of employee lawsuits are brought against private companies with less than 100 employees. The financial damage of employee lawsuits can be dramatic. The cost of settling out of court averages $75,000, and the average jury award hits $217,000 if you go to court and lose."
The numbers don't lie, the odds of an employee bringing a lawsuit against your business is much more likely than it has been in the past. Make sure to review your current business insurance policies with a licensed insurance agent and be sure to have adequate employment practices liability limits to cover your increased exposure. If you need help from a professional, give our team at TDA Insurance & Financial in Walled Lake a call today!