Your Protection Against Employee Lawsuits

Every Employer, no matter how small, faces the specter of being sued by a past, present or prospective employee at some time.

Such employment practices claims are widespread – so much so that most businesses are much more likely to have an employment practices liability claim than a general liability or property loss claim.

Nearly 75% of all litigation against corporations today involves employment disputes, which can be extremely costly.

The cost associated with an employment practices claim can be significant.

In 2018, the Equal Employment Opportunity Commission resolved 90,558 charges of discrimination and recovered about $505 million in remedies for discrimination plaintiffs.

In addition, the EEOC recovered nearly $70 million for victims of sexual harassment through litigation and administrative enforcement that year, up roughly 50% from $47.5 million in 2017.

Sexual harassment claims and recoveries have surged since the start of the #MeToo movement, which has emboldened many victims to come forward and file complaints.

Keep in mind, the above are just penalties and do not include defense costs, which can exceed $100,000 per claim for employers.

For these reasons and more, employment practices liability insurance is crucial for any employer. The risks of being sued by an employee for discrimination or harassment have increased substantially, particularly now in the #MeToo era.

Employers need EPLI coverage because comprehensive general liability policies and workers’ comp policies exclude employmentrelated claims.

EPLI coverage Policies cover:

• Defense costs (court fees, attorney fees and related costs).
• Payment of settlements and/or judgments up to the policy’s limits.
• Any fines or penalties levied by government agencies.

EPLI policies cover business owners as well as directors, officers and managers. Some policies also cover employees.

Additionally, you can buy third party policies to cover claims brought by nonemployees, such as clients.