Do I Really Need EPLI?
The Importance of Employment Practices Liability
When deciding on which insurance coverage to purchase, Employment Practices Liability insurance (EPLI) seems to be one of the most challenging decisions for employers. Often the question that comes up is, “Do I really need EPLI coverage? We’ve never had a claim, and we have a good human resources department…”
Let me start by asking you this: Would you still buy homeowners insurance even if you’ve never had a claim? Of course you would, because outside of the bank requiring it, you recognize there’s always the likelihood of something happening.
Now back to the original question: Is EPLI still necessary even if you’ve never had a claim? The answer is ‘yes’ EPLI coverage should be viewed as a major component of any business insurance program. EPLI provides protection from employment-related claims and lawsuits brought against the company, such as discrimination, wrongful termination, sexual harassment and negligent hiring practices.
Below are a few points to consider when on the fence about purchasing EPLI:
- Employee lawsuits and discrimination allegations are excluded under standard general liability coverage. So, without an EPLI policy in place, you’re 100% self-insuring the risk.
- Even with good employment practices in place, it’s not uncommon for legal fees associated with winning an employment lawsuit be in excess of $250,000.
- We live in a very litigious society, therefore, every employer, no matter how small or large, is vulnerable to legal action from past, present and prospective employees. In fact, employees can easily file a lawsuit at no cost or risk to them. The truth is, you’re now more likely to have an employment practices claim than a property claim.
- Outside of defense costs, if the case goes to trial, statistics show the average award amount is near $218,000.
To find out more about this important coverage, contact a member of the ‘A’ Team.
- Worst Case Scenario Savior: EPLI
- Order of Events: Submitting Potential EPLI Claims
- EPL Insurance Covers Much More than Your Employees
- Liability E-Book
ABOUT THE AUTHOR