Are you a business owner in California? This is why you need Employment Practices Liability Insurance-
Workers file lawsuits against employers every day. More than 1/3 of employee claims are made against small businesses. When that happens, a business owner needs help. This is why you need Employment Practices Liability insurance (EPLI). It is not covered in your Business Owners Policy (BOP).
Bad Things Do Happen
Employers of all types and sizes are sued by employees. Jury awards and out-of-court settlements can run into hundreds of thousands of dollars. Add legal fees and management attention, and the total cost can be staggering.
Most business policies do not cover employment suits. EPLI could help protect you from the financial consequences of an employment lawsuit. Your company may feel like a family, and it is hard to think of anyone filing a complaint. But over 100,000 administrative actions were filed with federal and state regulators in recent years. An additional number went directly to court. Companies with even one employee may be subject to liability under some federal and state laws. By the time you reach 20 employees, most significant discrimination laws apply to you.
EPLI protects employers from many claims. EPL insurance provides financial protection from a variety of employment lawsuits and complaints –
from discrimination and retaliation to sexual harassment. It can protect you from administrative actions filed for wrongful discharge, defamation, invasion of privacy and other wrongful employment acts. In addition, it can be breach of employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress, and mismanagement of employee benefit plans.
Small employers can be sued, too
Examples of EPLI claims include:
> Male worker in building materials supply company claimed sexual harassment after rejecting advances of female supervisor. Plaintiff Verdict: $50,112
> Retailer prohibited employee from using wheelchair on the job, and subsequently fired him. Plaintiff Settlement: $35,000
> Graphics company sued for retaliatory discharge of employee who testified on behalf of a co-worker. Plaintiff Verdict: $255,000
> Contractor/Concrete supplier terminated 76-year-old employee who alleged age discrimination. Plaintiff Verdict: $77,000
> Restaurant server, fired immediately after reporting her pregnancy, sued for pregnancy discrimination. Plaintiff Settlement: $30,000
Can any of these things happen to your company?
Are you prepared? If you want to learn more about Employment Practices Liability Insurance, or if you just want to discuss the kinds of claims that companies like yours experience, contact me at 949-248-3112.