The work force is ever changing especially during these tough economic times that have resulted in a rise in employment claims and litigation. Big and small business owners need to protect themselves with EPLI or Employment Practices Liability Insurance that covers them for exposures relating to employment (i.e. discrimination, wrongful termination et al). Business owners don’t have the resources to battle these cases on their own, nor are they prepared to implement risk management practices to avoid them. Obtaining business employment practices liability insurance will cover litigation expenses alleged by anybody from the employee to the third party. EPLI premiums are affordable, with minimum premiums that can be less than $1,000. Here are some facts worth noting that should influence small business owners in the right direction, taken from June 2010’s issue of Best Review.
• Hartford Steam Boiler found two out of three [small business owners] were concerned that their employees will file an employment-related charge against them with only a fraction, who have some type of insurance protection for workplace claims.
• U.S. Equal Employment Opportunity Commission reports that employment claims reached the second highest level ever in 2009, with more than $376 million awarded to employees.
• EEOC statistics also show 81% of claims settle for an amount ranging from $22,400 to $40,500 (excluding defense costs).
The time is now to protect your company from employment claims. Don’t wait, because if you get sued then it is too late to buy coverage to cover that claim. A significant employment or workplace claim can be the tipping that can be the ruin of your business.
HCP National is an Employment Practices Liability, EPL, or ELPI provider or broker for over 16 years. As an EPLI broker we know the risk exposures of employment, and we know how to insure it. This blog does not alter or change coverage, nor is meant as legal advice.