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  • Why Employment Practices Liablity Insurance (EPLI) is a Must Have

Why Employment Practices Liablity Insurance (EPLI) is a Must Have

Here are some scary statistics:

1. Employee lawsuits have risen over 400% in the last 20 years.  Wrongful termination suits alone have increased 260%!

2. 41.5% of these lawsuits were brought against private employers with fewer than 100 employees.

3. The average cost to settle an employee lawsuit out of court is $75,000.

4. The average amount awarded to employees in jury trials is $217,000.

Yikes! With all of this going on you must have this coverage to avoid a major expense that could cripple your business or worst of all ruin your reputation and shut the doors for good.

So what does this coverage give you? Employment practices liability insurance, commonly referred to as EPLI insurance, is specifically designed to protect employers from lawsuits brought on by employees. It provides coverage for many situations that general liability insurance does not. EPLI insurance will provide compensation for losses caused by employee lawsuits, including all incurred court costs and legal fees. Here are some examples of the types of suits that are commonly brought against employers:

Wrongful termination is the most common claim brought against employers in lawsuits. The EEOC states that is it illegal to fire an employee on the basis of their age, race, national origin, sex, or because of a disability. It is also illegal to terminate employment because an employee did any of the following:

  • Took a leave of absence under the Family Medical and Leave Act (FMLA).
  • Reported wrongdoings to authorities, as dictated by the Whistleblower Protection Act.

Harassment lawsuits most frequently involve sexual harassment, but can also include cases of workplace violence or bullying. The harassment may come from senior administrators, supervisors or co-workers. If the employee can prove that the company was aware of the problem and did nothing or made inadequate attempts to remedy it, the company may face fines and penalties if the case is brought to trial.

Discrimination cases involve situations where an employee is turned down for promotions or advancement opportunities on the basis of age, sex, race, national origin or disability. Employees typically win these cases when they are able to show a trend toward discrimination within the company.

The good news is this coverage is typically not expensive to purchase and can prove to be a great investment in the event you should find yourself in a sticky situation. At Beimdiek, we're interested in protecting companies from all types of risk. Call us today at 417-358-4007 to find out what coverage you are missing and how we can help insure your continued success.

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