Employment Practices Liability covers such exposures such as wrongful termination, discrimination, invasion of privacy, sexual harassment, false imprisonment, emotional distress, breach of contract, and wage and hour law violations.
If a business has employees, they are open to employment practices lawsuits. Employee lawsuits have risen roughly 400% over the last 20 years. During this time, wrongful termination suits have jumped up more than 260%. When looking at private companies with less than 100 employees, 41.5% of these companies have experienced employee lawsuits. These types of suites can be very costly. The average cost of an out of court settlement being $75,000 and a jury award coming in above $200,000.
Employment practices liability insurance (EPL) is a cost-effective way to protect business owners against these types of losses and can be written on a stand-alone or added to a business owner’s policy. Considering the average cost of a claim, it makes sense to offer this coverage to all of your commercial clients!