Business owners typically consider property, general liability and workers compensation as necessary insurance policies to protect their assets. With the incidence of employment practices liability (EPL) claims widespread and growing, EPL insurance should be an important consideration for every business owner.
Myth: Our employee handbook is clear, so we don’t have to worry about an EPL claim.
Facts: An employer with superior internal controls and procedures can still encounter lawsuits.
Every business has an EPL exposure, and even frivolous claims can require a significant investment of your time and money to hire skilled legal counsel to defend your business.
Myth: EPL claims are not that common, so our company is unlikely to be affected.
Facts: Studies show an employer is more likely to have an EPL claim than a general liability or
property loss. Claims for sexual harassment, wrongful termination and discrimination continue to be on the rise; almost 75 percent of litigation against companies today involves employment disputes.
Myth: EPL claims are only a concern for big companies. We are too small to have an EPL claim.
Facts: More than 40 percent of all EPL claims are filed against private employers with 15 to 100 employees, and employment-related lawsuits are the fastest growing type of civil case in the U.S.
Myth: We can’t afford this additional coverage.
Facts: Based on these trends, a business owner can’t afford to go without this coverage. Without EPL insurance, a costly claim can seriously impair or permanently shut down your business.
So, what are some real-life scenarios? Watch this video where our underwriters explain EPL insurance and examples of where this protection has come into play.