EPLI Endorsement: Why You Should Have It

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To help mitigate your risks, Employment Practices Liability Insurance (EPLI) has become a major element of small business insurance needs. EPLI generally covers your company for wrongful termination, sexual harassment, discrimination, and workplace torts.

Here are the Top Ten Reasons EPLI is a must for small businesses:

  1. Employee lawsuits and discrimination charges are excluded under standard general liability policies.

  2. Every employer, large or small, can be the target of legal action from past, present, and prospective employees.

  3. Employee lawsuits are 1,000 times more likely to occur than a fire.

  4. Employees file over 90,000 charges per year with the U.S. Equal Employment Opportunity Commission.

  5. Employees can easily file lawsuits at no cost, with no risk to them.

  6. Employees win 70% of jury trials.

  7. Many jury awards exceed $1,000,000.

  8. Employer defense costs can easily exceed $200,000.

  9. An owner, director and officer’s personal assets can be at risk.

  10. Mid-sized businesses with 15 to 250 employees are sued more frequently than larger businesses, often due to:

    1. Inadequate Human Resources/Employment Law Management

    2. Ineffective Loss Prevention Programs

    3. Valuable Unprotected Assets to Target

Unfortunately, even with the proper guidance, employees are free to sue and that is where EPLI comes in to provide a defense and indemnification for covered matters.

Did you know? SIA Group’s Human Resources Department can help you navigate through many of the HR issues prompting suits and charges. While there is nothing guaranteeing you won’t be sued by a disgruntled employee, a comprehensive HR plan adequately executed can go a long way in decreasing the likelihood of a claim. Our company has a staff of trained and certified HR professionals who will guide you through employee relations and other compliance issues to reduce your company’s risk. Contact us today for more information!