If you are a business owner your company– large or small, runs the risk of being sued by a current, previous or even a potential employee. There are a myriad of circumstances that could lead to a lawsuit being filed against your company and your ability, or inability to monitor these situations may not affect the outcome.  In some cases, these claims may not be legitimate but still have the potential to become a costly lawsuit.

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In order to protect your business and its assets from employee related lawsuits or claims, your business can purchase Employment Practices Liability Insurance (EPLI).  It provides coverage against claims such as discrimination (age, gender, race), sexual harassment, and wrongful termination– covering legal costs and expenses whether you win or lose the suit. These claims are not typically covered under your business’ General Liability Insurance.

Your Employment Practices Liability coverage cost is based on your business’ type, size, and location.  The number of claims and lawsuits filed again your company as well as the number of employees and the age of your business will also affect the cost.

EPLI Facts and Statistics

  • An employer is more likely to have an employment claim than a property or general liability claim.
  • $45,000 or more is the average cost of defending an EPLI case through trial.
  • $40,000 is the average amount paid for an out of court settlement.
  • $218,000 is the median compensatory award in EPLI cases.
  • 67% of employment cases that litigate result in judgements for the plaintiff (source: Society for Human Resource Management).

An EPLI policy can be tailored to your business’ needs by your independent agent.  Rossmann Hurt Hoffman Insurance of Ellicott City, Maryland will with you to create a policy to protect all aspects unique to your company.  We will provide you with all necessary information and provide options for you to make a well informed decision.

Posted in: Business Insurance, Employment Practices Liability Insurance, liability insurance, Maryland Insurance

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