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Employment Practices Liability

EPLI Coverage

Our advice is always rooted in the protection of you and your company because we are all in this together – if one of us fails to do the right thing, we may all suffer the consequences for it. Because of this, it’s important to research and look into Employment Practices Liability Insurance (EPLI), an insurance that protects employers in cases of employee allegations.

Why Your Company Needs EPLI:

  • Charges against employers for discrimination, sexual harassment, wrongful termination, retaliation, and wage-and-hour violations are at all time highs. According to Mashable, the most common claims that employers face are discrimination claims.

  • The legal landscape for employers continues to change with passing of new laws. Laws like the Lilly Ledbetter Fair Pay Act of 2009 and the Americans with Disabilities Act of 2008.

  • Layoffs, downsizing, salary freezes, and reductions in benefits can be used by past and present employees as evidence of “tangible adverse employment actions” to file charges of discrimination, harassment, retaliation, and wrongful termination against employers.

A recent survey published in 2015 by Hiscox Inc. shows just how costly it is when employers fail to take preventative measures. The study analyzed employment related lawsuits in the U.S. Some of their findings were:

  • The average cost of defending a lawsuit: $125,000

  • The average duration of an employment claim: 275 days

  • 19% of claims resulted in monetary settlements

The cost of settling outside of court can average $75,000 and the average jury award can run $217,000 if you lose in court. By keeping up to date with laws, ensuring your company policies protect you from lawsuits, and keeping in contact with a qualified HR firm you can avoid the costs of defending you and your company from employee claims.

About 7 in 10 businesses do not carry EPLI – don’t be one of them.

Rick Maher


Turning Point HCM

* According To City Underwriting

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