Employment Practices Liability Insurance
Employment-related lawsuits (legitimate or otherwise) filed against an agency are costly to defend and even more costly if a settlement is required or damages are awarded to the plaintiff. Consider the following statistics:
- Employee lawsuits have risen approximately 400 percent over the last 20 years.
- Of these, wrongful termination suits have risen more than 260 percent.
- 41.5 percent of these suits were brought against private employers with fewer than 100 employees.
- When employee lawsuits go to trial, the employee wins more than 63 percent of the time.
- The average cost to settle an employee lawsuit out of court is $75,000.
- The average amount awarded to employees in jury trials is $217,000.
Agencies need a comprehensive Employment Practices Liability Insurance (EPLI) policy because standard business liability insurance policies often do not provide sufficient coverage for costs associated with employee lawsuits.
By purchasing an EPLI policy, your agency will be covered against claims made by past, present and potential employees, including claims for discrimination (age, sex, race, etc.), sexual harassment, wrongful termination, and a variety of other employment related allegations. Importantly, an EPLI policy will cover legal costs and expenses, whether your business wins or loses the suit.
Financing Your Agency's EPLI Coverage
You can use premium financing to manage your agency's EPL Insurance costs when you purchase your policy through My Agency.
Let's begin the conversation
Business Development Specialist Mike Thompson is ready to get to know your agency and deliver the kind of personalized service you give your customers. Call him at (800) 998-9644, ext. 206 or email Mike to begin a discussion of your needs.
We work with a number of partner carriers to offer EPLI on either a stand-alone basis or by endorsement to an existing E&O policy where available. We even have the option of offering excess coverage up to $2 million for Penn National Umbrella policyholders.