Employment Practices Liability: Myths vs. Facts

Business owners typically consider property, general liability and workers compensation as necessary insurance policies to protect their assets. With the incidence of employment-related claims widespread and growing, EPLI should be an important consideration.

MYTH: Our employee handbook is clear, so we don’t have to worry about an employment practices liability (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 aren’t that common, so our company is unlikely to be affected.

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 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 less than 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 EPLI, a costly claim can seriously impair or permanently shut down your business.

Author

As a mutual insurance company, we operate and exist for the benefit of our policyholders. For more than 100 years, Society has been helping businesses overcome the unexpected with comprehensive coverage packages and outstanding claims handling, underwriting and risk management.

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