EPL coverage protects your firm against wrongful termination, discrimination, and harassment type claims.
According to the Equal Employment Opportunity Commission (EEOC) the average number of Employment Practices Liability cases filed from 1997 to 2011 was a staggering 85,000 average per year and close to 100K in 2011 alone.
As the economy deteriorates, employment lawsuits often rise as employees try to deal with job loss and lack of opportunities. In the last recession in 2001-2002, post 9/11, lawsuits increased by 4.5%.
We also see Small firms are just as vulnerable as large firms. Statistics show that firms with 15-100 employees actually suffer over 40% of all EPLI claims.
In addition, EPLI claim costs are extremely large. The average cost to defend an EPLI claim is $125,000; the average settlement on an EPLI claim is over $200,000. Once a claim evolves into a lawsuit, results favor the employee. Of the suits that go to trial, employees win over two-thirds of the time.
Protecting you against EPL lawsuits.
It’s essential that businesses have a written employee handbook with strong anti-harassment and anti-discrimination policies. Training supervisors in HR procedures and policies and Employer to periodically hold seminars for management staff training to keep up with new laws and regulations regarding HR procedures are some ways to help reduce your exposure.
When you decide to purchase an EPL policy, make sure you make sure you look at the policy limits and deductibles. The lower the deductible and the higher the limits, the more expensive the policy will be. Another is whether the policy allows you to choose your own lawyer to represent you in a case of a claim.