What is Employment Practices Liability
Coverage? (EPL)
Protection for the company against damages for events relating to their workforce,
including but not limited to; wrongful terminations, harassment, discrimination,
defamation and unfair hiring/firing practices; it also provides defense costs
associated with responding to employment related lawsuits.
Why Private Companies Should Consider Buying
EPL Liability Coverage:
• Employers are facing increasing legal
obligations while managing their workforces
• Increased awareness and visibility of employment related
lawsuits
• Settlements can have a significant impact on the company’s
financial stability
• Cost to defend against employment suits is high regardless of the outcome
• An employment lawsuit, if not handled properly, can cause irreparable
harm to a company’s reputation
• Lawsuits based on language in employee handbooks and other written policies
and procedures are increasingly common
• Compliance with laws in the workplace is costly, requires expertise, monitoring
and training
"Commercial General Liability policies
are not adequate to respond to EPL Matters".
Employment Practices Liability - Some hair
raising statistics!
Every employer and supervisor knows that they can be
sued for sexually harassing an employee, wrongfully terminating
someone, or purging the firm of elderly employees. Most
employers and managers think, "My Company doesn't do things
like that, so getting sued could never happen to me." But, the odds say
it will.
Here are some statistics:
• 80% of those sued feel that the suit
is baseless and unfair
• There are 550 new employment suits a day
• 41% of jury verdicts are against firms with only 15
to 100 employees. With respect to costs, here are some other
statistics
• Defense costs average over $100,000, and cases typically last over two
years
• 67% of tried cases result in a victory for the plaintif
• At least 15% of all verdicts are in excess of one million
Given these realities, it becomes important
to ask: "What are the telltale signs of employment liability
exposure? What are the signs of a division or company at
risk?"
The following are all indicators of employment
practices liability, and should be managed carefully:
Organizational change? Mergers, acquisitions,
divestitures, spin-offs, consolidation, downsizing, high
growth, or reengineering. These activities can cause layoffs,
dramatic changes in career opportunities, demotions or more
selective promotions. These are all fodder for employment
claims, and must be carefully managed.
Significant use of a contingent work force?
Overuse or misuse of a contingent workforce can cause the
court to deem the workforce "employees", with concomitant
rights to monetary and non-monetary benefits.
Aging baby boomers? Age 40 starts the protected
age class under Federal law. Changes in their employment
status and benefits must be carefully managed.
Employees working from home (telecommuting,
home workers)? Employers pick up the duties to ensure a safe
work area (for example, proper lighting, chairs, and desks)
and privacy (for example, accessibility to online materials).
Contact Us today to get your quote!
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