Is your client protected against employment-related claims?
- 42% of EPLI-related lawsuits are filed against companies with fewer than 100 employees.
- Over the last 20 years employee lawsuits have risen roughly 400%
- Roughly 7 out of 10 businesses don’t carry EPLI insurance.
Despite these statistics, 6 out of 10 businesses falsely believe EPLI claims are covered under their general liability policy.
Employment Practices Liability Insurance (EPLI) provides defense and indemnity protection against claims arising from the employer/ employee relationship.
Too many business executives believe, “My business does not need protection.”
Employers are required to comply with the federal, state, and local employment laws that govern their businesses. Employment discrimination suits are one of the most common heard in the federal courts, behind only criminal and prisoner-related cases.
To many business executives also mistakenly believe, “My company can absorb the cost of a lawsuit.”
Unfortunately, the only firms that still believe this are the ones that haven’t been sued yet. The average cost of settling out of court for an employment claim is $75,000. The average jury award for an employment-related case is $217,000.
Legal actions can cost more than money. Key staff members may have to testify, give depositions, or gather information regarding the case – instead of running the business. A lawsuit can damage a company’s reputation.
Once a case gets to trial, plaintiffs win nearly three-quarters of the time. Plus, you likely have to pay court costs and legal fees. Even if the lawsuit against the employer is frivolous, defending it can cost more than $50,000.
Rockwood’s EPLI policy shields employers – plus all current, former and prospective employees, directors and officers, even the corporate entity – against a broad spectrum of employment-related claims.
- Coverage for Third Party Wrongful acts available
- Wage and Hour coverage available (subject to sub-limit)
- Multiple liability limit options – up to $2,000,000/ $2,000,000 available
- “Soft Hammer” wording with a 75/25 Insured/ Insurer split
- Full Prior Acts/Prior Acts Coverage Available
- Coverage for alleged violations of the Immigration Reform Control Act provided via endorsement at no cost to the Insured (subject to $25,000 sub-limit)
- Prior acts coverage available
*Certain restrictions may apply
Broad Coverage Definitions
- Definition of “Employee” includes Independent Contractors, Volunteers, and Leased Employees under the direction of the Insured
- Definition of “Loss” includes compensatory, punitive, and exemplary damages (where allowable by law)
Other Policy Features
- Advocacy claims defense provided by nationally-recognized legal experts
- Access to risk management hotline available to all policyholders
- Defense Outside the Limits of Liability available via endorsement