Here at KEH Insurance Agency, we understand that owning a business is difficult. We also know that having employees is just as difficult, if not more! It is a grueling process hiring the right employee, and often even more challenging to appropriately dismiss the one that is underperforming and causing problems for your company. It is extremely critical to plan for these situations. Part of this planning is proactively working with an employment practices attorney, along with an insurance professional, to help plan and manage the risks associated with having employees.
10 Reasons to Buy Employment Practices Liability
- Employment Practices Liability covers not only actual but also alleged acts of discrimination, harassment, retaliation, wrongful termination, failure to promote and other similar acts.
- It’s estimated that nearly 60% of employers have issues with former employees every year.
- Over 40% of Employment Practices Liability claims are against firms with fewer than 100 employees.
- Some Federal and State employment laws apply to all employers regardless of size
- The Equal Employment Opportunity Commission (EEOC) records over 100,000 charges every year and obtains more than $300 million in settlements for claimants.
- The financial ramifications of not having Employment Practices Liability insurance can be crippling, especially for small firms because they do not have the operating budgets to handle the defense costs, let alone settlements or judgments, of an uninsured claim.
- The medium cost of an EEOC lawsuit in exceeds $250,000.
- There is no Employment Practices Liability coverage under an unendorsed Commercial General Liability policy. Endorsements generally provide insufficient limits, don’t provide the breadth of coverage of a separate Employment Practices Liability policy and reduce the aggregate limit on the Commercial General Liability policy.
- In the past decade wage and hour litigation has tripled. More wage and hour collective/class actions have been filed in recent years than any other types of employment class actions combined.
- Gender discrimination, age discrimination, and retaliation claims are on the rise. There are more women and “baby boomers” in the workplace than ever before. Recent Supreme Court decisions have lowered the standard of what constitutes retaliatory treatment.