Employment Practices Liability Insurance

What is Employment Practices Liability Insurance?

  • Employment Practices Liability (EPL) Insurance protects an employer from employees' claims alleging discrimination, wrongful termination or harassment, including sexual harassment.
     
  • EPL Insurance pays for liability damages and defense costs due to these charges brought by full-time, part-time, temporary and seasonal employees.  Claims brought by individuals other than employees, including independent contractors, are not covered.

Why do small businesses need EPL coverage?

  • Employment laws that employees may use as a basis for action against their employer apply to the majority of businesses, including small firms.
     
  • Even groundless charges may require legal defense, and defense costs can be significant.  Insureds need EPL coverage to have those defense costs covered and get access to attorneys experience in defending employers from employment-related charges.
     
  • Today's business and legal climate is different than it was years ago.  Employees are more aware of employment laws, their rights and how to exercise their rights by taking actions against employers.

You need protection.

Employee litigation against small business is growing. You are more likely to have an employment claim than a property or general liability claim. Claims can be brought by employees, applicants, customers or clients alleging harassment, discrimination or other allegations against your business.

Can you afford a costly payout or expensive lawsuit?

Few small businesses can afford the high costs associated with an employment claim.

  • Fact: The median jury award in employment cases was $200,000 in 2007
  • Fact: Typical attorney fees, if an employment case settles prior to trial,
    are $100,000.

CONSIDER THE FOLLOWING TYPICAL DEFENSE COSTS
Administrative Charge Against your Business
Defense of an Equal Employment Opportunity Commission or Administrative Charge.		 $4,000 – $7,000
Lawsuit Filed Against your Business
Answer to lawsuit filed.
Begin discovery of evidence.		 $12,000 – $18,000
Pretrial filings and preparation
These include additional motions and responses, excessive document analysis and review, written case evaluations or status reports, and settlement-related matters.		 $20,000 – $30,000
Mediation $10,000 – $15,000
Motion for summary judgment filed
Includes reply brief.		 $8,000 – $12,000
Trial $15,000 – $25,000

AND, if you do not prevail in trial, you can incur significant costs of a verdict against you.

Ask your independent agent or broker for a quote today.

By simply providing the following information, your agent should be able to provide you with a quote within a few minutes.

  • Number of employees
  • Terminations and layoffs as a percentage of your workforce
  • Claims or threats of claims by employees within the last three years
  • Confirmation of written employee policies, including anti-discrimination and harassment policies
  • Current Employment Practices Liability Insurance

It's that simple.

It’s your business. . .Protect it.

Your employees are your greatest assets.
You know and trust your employees. You expect your employees to work hard to help grow your business. But it doesn’t always work out.

They are also your greatest threat for lawsuits.
You may have to make that tough call to fire an employee. Or an employee may get angry and quit—and sue you. There are many laws in place to protect employees and many law firms dedicated to employee litigation. The cost can be tens of thousands, hundreds of thousands, or millions, even for a small business.

Are you insured to best protect you and your business?
You have worked hard to build your business.
Protect it with Employment Practices Liability Insurance from Progressive—a complete package of coverage and services designed to protect you and your business from employment-related lawsuits and to help prevent claims.
 

If you are interested in obtaining more information or a quote, contact us.