Unfortunately, being a good employer does not prevent being sued by an employee. Employee lawsuits have risen almost 400% over the past 20 years with roughly 40% of employee lawsuits brought against private companies with fewer than 100 employees. Despite these facts, 7 out of 10 businesses don’t carry Employment Practices Liability Insurance (EPLI). Given that the average court costs and legal fees can reach $200,000 or more, not carrying EPLI coverage could be a costly mistake.
EPLI gives you protection against lawsuits resulting from claims of:
- Sexual harassment
- Wrongful discipline or termination
- Negligent evaluation
- Failure to employ or promote
- Breach of employment contract
- Deprivation of career opportunities
- Wrongful infliction of emotional distress
Even if a lawsuit has no merit and you are found not to be at fault, the cost of a lawsuit can be daunting. Note that quite often there is not a lawsuit. And, the coverage helps even before a lawsuit is filed. Formal complaints may also be filed with the Maine Human Rights Commission or US DOJ Civil Rights division. EPLI will cover the costs associated with complying with their requests. Fortunately, an EPLI policy covers legal costs whether your company wins or loses. You can protect your business from disgruntled employees. Let’s discuss your business and determine if an EPLI is a smart choice. Contact your United Insurance agent. We are here to help.
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