5 Reasons Why You Need EPLI Coverage
There is the perception that Employment Practices Liability Insurance is only necessary or affordable for large employers. To the contrary, there are numerous reasons why all companies should consider EPLI as an integral part of your normal insurance purchases. Here are five reasons to seriously consider EPLI coverage:
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Statistics show that businesses are more likely to face an employment claim than a property or general liability claim. Over 93,000 claims were filed with the Equal Employment Opportunity Commission (EEOC) in 2009 - a 15% increase over 2007* - and the number keeps growing!
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As the economy deteriorates, employment lawsuits often rise as employees try to deal with job loss and lack of opportunities. In the last recession in 2001-2002, post 9/11, lawsuits increased by 4.5%.
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Small firms are just as vulnerable as large firms. Statistics show that firms with 15-100 employees actually suffer over 40% of all EPLI claims.
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EPLI claim costs are extremely large. The average cost to defend an EPLI claim is $125,000; the average settlement on an EPLI claim is over $200,000.
- Once a claim turns evolves into a lawsuit, results favor the employee. Of the suits that go to trial, employees win over two-thirds of the time.
Don’t wait until it’s too late – we can help you make sure your business is protected. Contact us today.
*Source: EEOC