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!

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.


Proactive as compared to reactive

February 17th, 2015

A lot of people scoff at today?s frequent use of the word ?proactive?. It started to resurface in the early 1980?s when author Kenneth Blanchard used it in his bestselling book, The One Minute Manager.

The term Proactive had originally been coined by a Jewish prisoner during world war two. Since then the word and its use have evolved to mean "to act before a situation becomes a source of confrontation or crisis" vs. after the fact.

What do you give to a guy who's walked on the moon?

February 16th, 2015

We asked ourselves the question that countless others have, no doubt, asked
"what do you give to a guy who's walked on the moon? "
By comparison, almost anything could be looked upon as insignificant...

This past summer, at the tail end of our family's month long journey through Italy, Gina and I excavated a tiny speck of Earth's history, a piece of the Roman Road from along the path that leads to the Coliseum.

First-Aid ? January 1, 2015 BEWARE New Rules Apply

February 15th, 2015

On January 1, 2015 new rules went into effect, as imposed by The Workers' Compensation Insurance Rating Bureau (WCIRB) . These new rules require employers to report all claims to their insurers, even those considered first-aid or small claims.

What you need to know about the Anthem breach ? Made available to UWIB.com clients by Dana Coates, an article written by Steve Haase

February 6th, 2015
Cyber-Liability Insurance Coverage from UWIB.com

As you may have heard already, Anthem Inc., the second-largest healthcare insurer in the US, announced on Wednesday that it was cyber attacked. Medical and personally identifiable information (PII) of 80 million customers and employees of the insurance colossus were potentially exposed, according to the Wall Street Journal (http://www.wsj.com/articles/health-insurer-anthem-hit-by-hackers-1423103720), which could make this the largest healthcare breach ever.

6 Ways to Reduce the Risk of Employee Crime

January 21st, 2015

We recommend that every small business owner consider the following best practices to reduce the risk of employee crime:

Perform thorough background checks (in accordance with law) of all potential hires; don?t take shortcuts or assume.

Make sure there is clear accountability for every position in the organization and no position has broad enough power to authorize payments without the consent of another individual. Seek to set up a system of checks and balances.

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