Is
Your Company Protected From a Lawsuit?
In many cases, today’s
society is suing first, and asking questions later; and unfortunately,
employers are not immune to employees suing the business. In fact, over the
last 20 years, employee lawsuits have risen over 400%! Sadly, 41.5% percent of
these lawsuits are affecting smaller companies with less than 100 employees.
According to the Equal Employment Opportunity Commission, statistics showed
over 80% of these types of claims settle between $22,400-$40,500, which could
be financially devastating to a small company. However, despite all of these
alarming statistics, nearly 7 out of 10 businesses do not carry Employment
Practices Liability Insurance (EPLI).
Employment Practices
Liability Insurance is designed to protect an employer from employees suing for
events such as wrongful termination, sexual harassment, discrimination,
deprivation of career opportunity, breach of employment contract, etc. The U.S.
Equal Employment Opportunity Commission stated that businesses paid out more
than $404 million in one year for claims brought against the business for
wrongful employment acts. Comparatively, the cost of an EPLI policy is a small
portion of what the business will pay if you end up on the losing side of a
lawsuit.
Unfortunately, according
to a recent study, 60% of businesses that choose not to purchase an EPLI
policy, mistakenly think they are protected under other policies. When
thousands of dollars lie in the balance of a small business, make sure you are
protected with Employment Practices Liability Insurance.
