Why Employment Practices Liability Insurance Is Vital For Your Companyon November 13th, 2012
If you own a business, do not overlook the importance of having Employment Practices Liability Insurance (EPLI). This type of insurance covers you in the event that one of your employees files a lawsuit against your company.
Employee Filed Claims are on the Rise
According to the Equal Employment Opportunity Commission, each year in the United States an average of 80,000 EPLI claims are filed by employees against employers. The average payout of these claims has risen over the years to approximately $180,000 per case. These cases aren’t just reserved for large corporations; businesses of all sizes are being affected by these lawsuits.
Reasons for Lawsuits
An employee can file a lawsuit against an employee for any number of reasons. Some of the most common include sexual or other workplace harassment, failure of the employer to promote the employee and wrongful termination. Employees can even sue over such issues as invasion of privacy and infliction of emotional distress.
Protect Your Business
In today’s litigation-prone world, it is not uncommon to see businesses go under as a result of employee lawsuits. Even if no judgment is awarded in the case, the cost for a business to defend itself can be staggering.
Do not let your company be destroyed by these claims. Protect your business and give yourself a little peace of mind with Employment Practices Liability Insurance.