Topics: EPLI Coverage
Twenty years ago, EPLI wasn’t widely used in the United States; even a decade ago, most companies didn’t buy it. Today, while many companies have stand-alone EPLI coverage, only about 20 percent of businesses with fewer than 50 employees had it as recently as 2015, according to Advisen, a data, media, and technology solutions provider for the commercial property and casualty insurance market.
Over the years, the EEOC, the federal administrator of employment practice laws prohibiting discrimination, has simplified the process of filing a charge or claim. Additionally, with access to information online, along with exposure to high-profile discrimination and harassment cases in the media, more employees are aware of their rights.
Without an HR department or, at least, an employee handbook, small businesses are more likely to be involved in an employment claim than their larger counterparts. In fact, according to the 2015 Hiscox Guide to Employee Lawsuits, businesses with fewer than 500 employees have an 11.7 percent chance of having an employee file a claim or suit for discrimination.
Understanding your employees’ rights is paramount to protecting your business. In 2016 alone, employee accusations ranging from discrimination to wrongful termination led to the EEOC securing more than $482 million in settlement payouts secured for employees who filed such charges.
Here are several statistics to think about:
For more information on these statistics, see the Resources section at the end of this article.
Understanding what EPLI coverage is and how it affects small business owners is the key to ensuring that your business is covered in the event of an employment practices lawsuit. Read our article “Building a Case for EPLI Coverage” to learn more.
Equal Employment Opportunity Commission
The American Bar Association
Conflict Solutions Center
Complete the picture: A spotlight on the United States Employment Practices Liability Insurance market, a study conducted by Advisen, September 2014
Law 360, a LexisNexis Company
Sue first; ask questions later. That’s the mindset of many employees in today’s workforce. Fueled by many factors, employee lawsuits can be devastating. Beyond damaging your business’s reputation, an employment claim can lead to lower morale, diminished productivity and lost trust.
Statistically, it’s three times more likely to happen than a fire. But like a devastating blaze, it could destroy your business. It’s an employee lawsuit. If you own a small business, the risk of being sued by an employee is very real. According to the U.S. Equal Employment Opportunity Commission (EEOC), employees of businesses big and small filed over 90,000 employment-related claims in 2016 alone. In this article, we’ll take a look at five industries that are ideally suited for Employment Practices Liability Insurance or EPLI.