Employment Practices Liability Insurance Coverage Policy Welcome to Employment Practices Liability Insurance
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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

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(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.

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