Employment practices liability is a specific a type of liability insurance covering wrongful acts arising from the employment process. the most common claims arising include, but are not limited to, wrongful termination, discrimination, sexual harassment, and retaliation.
EPL policies can come into play on other types of workplace misconduct as well. Defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. For the veteran owned business that has employees this is a necessity. To help mitigate your risks, Employment Practices Liability Insurance (EPLI) has become a major element of small businesses’ insurance needs.
Here are the top ten reasons EPLI is a must for small businesses:
1. Employee lawsuits and discrimination charges are excluded under standard general liability policies
2. Every employer, large or small, can be the target of legal action from past, present, and prospective employees
3. Employee lawsuits are 1,000 times more likely to occur than a fire
4. Employees file over 90,000 charges per year with the U.S. Equal Employment Opportunity Commission
5. Employees can easily file lawsuits at no cost, with no risk to them
6. Employees win 70% of jury trials
7. Many jury awards can exceed $1,000,000
8. Employer defense costs can easily exceed $200,000
9. Owners’, directors’ and officers’ personal assets can be at risk
10. Midsize businesses with 15 to 250 employees are sued more frequently than larger businesses, often due to:
- Inadequate HR/employment law management
- Ineffective loss prevention programs
- Valuable unprotected assets to target
List courtesy of (http://alcotthr.com/top-10-reasons-why-epli-insurance-is-a-must-for-small-businesses/)
To learn more about EPLI, please reach out to me at 803-250-3709, or on the web at www.insuranceforvets.com.