Employment Practices Liability Insurance Coverage Policy Welcome to Employment Practices Liability Insurance
of California - coverage is NOW AVAILABLE NATIONWIDE

(see United Agencies Newsletter)

Bulletin: Click here to see our new Directors & Officers resource section! California Labor Laws 2013New: California Labor Laws 2014

EPL insurance for business professionals prevents headaches
Every employer, large or small, faces the reality that it will be the target of legal action from past, present, and prospective employees.

Through legislation like the Americans With Disabilities Act and the Family Medical Leave Act, Congress has created new grounds for employers to be sued. The Equal Employment Opportunity Commission (EEOC) provides some significant statistics with regards to discrimination cases (see right panel).

The policies we sell provide coverage for a wide spectrum of employment-related claims and offer loss prevention programs for business professionals to help minimize the risk of those claims.

We can provide some of the most comprehensive employment practices Liability Policies offered to small businesses.

Consider the Following Facts Regarding the EEOC:

From October 1, 1993 through September 30, 1994, the Equal Employment Opportunity Commission (EEOC) and related state and local agencies received 156 discrimination complaints.

As of May 1, 2003, the Equal Employment Opportunity Commission had a backlog of over 100,000 complaints and the average complaint took more than a year to handle.

In 2002 over 13,000 complaints of sexual harassment were filed with the EEOC. Settlements for cases in 2003 exceeded 50 million. Defense costs were several times this number.

Consider the Following Facts Regarding the ADA:

From 1993 to 2009, there was a 29% increase in the number of charges filed under the Americans With Disabilities act (ADA). There was a 43% increase in the number of complainants who received money, and a 77% increase in the amount of money recovered for complainants.

From 1993 to 2009 ADA charges rose from 17.4% of all charges filed with the EEOC to 23% of all charges filed. The EEOC filed 874 lawsuits claiming violations of the ADA, collecting a total of $86,633,804 for victims of disability discrimination - THIS DOES NOT INCLUDE THE COST OF DEFENSE FOR THESE CLAIMS!

Settlements Can Be High: Employers will still incur expenses through defense costs regardless of awards:


Out-of-Court Settlements:

  • Defense Costs: $15,000
  • Avg. Settlement: $75,000

Dismissal / Motion for Summary Judgment:

  • Defense Costs: $50,000 - $75,000
  • Avg. Awards: $0

Jury / Trial:

  • Defense Costs: $125,000+
  • Avg. Awards: $217,000

Watch Video: Where D&O takes over
from General Liability Insurance

(Data from Jury Verdict Research - only for ADA charges)

Not only are the numbers of employment-related claims increasing, but so is the potential financial risk to your business. Defending a wrongful termination or discrimination claim -- whether you are innocent or guilty, or even if the claim is groundless or fraudulent -- can be expensive. The potential exposure for a money damages award threatens your company's financial resources.

In the face of this increased risk to your business, it is also increasingly likely that your current insurance excludes coverage for employment-related claims. Most comprehensive general liability policies specifically exclude employment-related claims. For the small for-profit business, a directors and officers policy may offer a limited form of insurance coverage, but will probably not extend coverage to the business entity. Other forms of insurance, such as fiduciary liability coverage, are unlikely to cover these types of claims:

  • Sexual harassment
  • Wrongful Termination
  • Discrimination
  • Statute Violation
  • Negligent Hiring
  • Negligent Supervision
  • Negligent Promotion
  • Negligent Retention
  • Disabilities
  • Breach of Contract
  • Loss of Consortium
  • Emotional Distress
  • Invasion of Privacy
  • Wage and Hour Disputes
  • Drug Testing
  • Mental Anguish
  • Libel
  • Slander

In response to the escalation in employment-related litigation and the financial risk to small businesses for employment-related claims, we offer our clients the service of shopping for Employment Practices Liability. Drawing on our many years of experience in handling claims for our clients, we have worked with carriers who specialize in, and have designed, a comprehensive program to assist your business in reducing its exposure to claims by employees.

 
 

Tips for Managers & Board Members of Non-Profit Organizations

March 16th, 2014
Not-For Profit Tips for Managers & Board Members

I work with families who have private foundations, I also provide risk management services to many Non-Profit Organizations and I arrange insurance coverage for most of these. Board members frequently ask for a "quick reference guide" to the insurance needs and some of the basic risks that "typical" not for profit organizations face.

Is he really an "independent contractor" or are you just in denial...

February 17th, 2014
Employee or 1099

REVENUE RULING 87-41 - FACTORS FOR DETERMINING IF INDEPENDENT CONTRACTOR STATUS APPLIES

Why should you choose symbol ?1? for liability coverage on a commercial auto insurance policy?

February 4th, 2014
Commercial Auto Symbol 1

To a non-insurance person, this may sound like a bunch of gobbledygook... Let's see if we can help to make sense of it all. Commercial auto insurance policies protect several different parties; the business to which the vehicle is registered, you as the owner of the business, the vehicle itself and others. Insurance carriers are able to expand or restrict who is insured by using special codes when they build the policy for your company. In insurance lingo these codes are referred to as "symbols" or more specifically, coverage symbols.

How to Survive an OSHA audit

January 17th, 2014
OSHA Inspection of workplace

OSHA may find its way to your location, if they do, you need to be prepared.

Let's walk through your front door, do you already have an OSHA 300 Log readily available in a folder for easy access in the entry area of your business? Oh, someone told you that unless you have more than 20 employees you don't need it? WRONG, don't become a victim of relying on incorrect information...

Here's a fill able version of the OSHA 300 Log that you are free to download and complete: click here for the PDF version. If you would like my assistance to complete the form, contact me it's free too.

Be prepared for a visit - Plan for an inspection -
Don't be caught off guard, it could cost you big buck$

Indicators of Workers' Compensation Claimant Fraud

January 5th, 2014
Help to prevent or reduce work related fraud

In most states, workers' compensation is considered "no fault," meaning that any injury incurred by an employee, regardless of the cause or nature of the accident, is covered by one's workers' compensation policy.

For more blogs like this one, please visit AskDanaCoates.com
 
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