Employment Practices Liability Insurance, or EPLI is one of the fastest growing segments of the insurance industry, driven by the rapid escalation of lawsuits brought by Employees. While good hiring practices can help limit exposure, the only way to fully protect your business is by transferring that risk to a reputable insurer.
Employment Lawsuits are on the Rise
Business Owners may think their chances of being sued by an employee are one in a million, but they’re wrong. The number of employment related lawsuits has steadily increased: In 2009 alone, the Equal Employment Opportunity Commission (EEOC) received over 93,000 charges, the second highest level ever.* Add to that the hundreds of thousands of employment claims filed with state and local agencies and the numbers are staggering.
Good Human Resources Policies are Not Enough
Yet, even an organization with good human resources policies and procedures in place can be sued, and the cost of defending a claim can be enormous. It is not uncommon for legal fees associated with winning an employment lawsuit to exceed $250,000. Moreover, the national jury-award median for employment practice liability cases was $326,000 in 2008, up 60 percent from 2007**.
For more information about Employment Practices Liability Insurance or EPLI call us at 803-798-5754
*The U.S. Equal Employment Opportunity Commission, Charge Statistics, http:www.eeoc.gov/stats/charges.html
**According to Jury Verdict Research
