Top 5 reasons why you need EPLI coverage

Posted in General, Business

When it comes to protecting your business, it’s important to protect yourself against employee lawsuits. The costs associated with these claims can be staggering and can affect businesses of any size or type. Employment Practices Liability Insurance provides protection against employment practice claims such as discrimination, sexual harassment, and wrongful termination1.

Here are the top 5 reasons why you need EPLI coverage to protect your business.

1. Employee Lawsuits are growing

In the last ten years, employee filings with Equal Employment Opportunity Commission have increased by over 20% - making this an ever-growing risk for employers 2.

2. Settlements are getting more expensive

Not only is the number of employee lawsuits growing, but the amount of money payed out as a result of these claims is rising. The average settlement for employment practice claims is now estimated at $70,000. 

3. Big or small – all companies face risks

Whether your company is large or small, has many or few employees – all businesses should prepare themselves.

4. You can be fault-free, but it will still cost you

Even businesses that are fault free face costs – legal defense and fees are still an associated expense when it comes to employment practices claims. Businesses with EPLI coverage can breathe easy knowing they are covered.

5. Your current policy probably doesn’t provide coverage

Commercial Liability policies usually don’t include EPLI claims. Commercial Umbrella policies may also exclude them.

It is important for business owners to understand that EPLI coverage is a necessary step to take in protecting their business. Make sure that you are covered where it counts – reach out to your independent insurance agent today.

Commercial policies are underwritten by Integrity Insurance, Columbus, OH, and are subject to underwriting approval. Not available in all states. This article is for informational and suggestion purposes only. Implementing one or more of these suggestions does not guarantee coverage. If any policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. For full details on Integrity’s business insurance coverages and discounts, contact your local, independent Integrity insurance agent.

Sources:
1 Insurance Information Institute  
2 Equal Employment Opportunity Commission  


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