Top ten reasons to buy Employment Practices Liability (EPLI)
Posted by LPL Risk Management on
My name is Anthony Pomilla, President of LPL Risk Management. Our goal is to provide sound Risk Management techniques to help our clients save money, protect their business, clients and employees. EPLI coverage is an important part of that. Here are some good reasons:
1. EPL covers not only actual but also alleged acts of discrimination,
harassment, retaliation, wrongful termination and other similar acts.
2. 3 out of 5 employers are sued by former employees every year.
3. Over 40% of EPL claims are against firms with fewer than 100 employees.
4. Some Federal and State employment laws apply to all employers – any size
company has exposure!
5. The Equal Employment Opportunity Commission (EEOC) recorded nearly
76,000 charges in 2006 and obtained more than $274 million in settlements
6. The financial ramifications of not having EPL insurance can be crippling,
especially for small firms because they do not have the operating budgets to
handle the defense costs, let alone settlements or judgments, of an
7. The medium cost of an EEOC lawsuit in 2006 exceeded $200,000.
8. There is no EPL coverage under other insurance policies such as General
Liability (GL). Any endorsement to another policy generally provides
insufficient limits, does not provide the breadth of coverage of a separate
EPL policy and erodes the limit available for the GL exposure.
9. Since 1997, wage and hour litigation has tripled. More wage and hour
collective/class actions have been filed in recent years than any other types
of employment class actions combined.
10. Gender discrimination, age discrimination and retaliation claims are on the
rise. There are more women and “baby boomers” in the workplace than ever
before. Recent Supreme Court decisions have lowered the standard of what
constitutes retaliatory treatment