Metro Articles


Employment Liability Update


Nathan Smith Thursday, April 4, 2013

In today’s world employers can no longer assume all employment relationships will go smoothly. Finding a suitable Employment Practices Liability Insurance program has become one of the single most important things you can do to protect yourself. Here are a few items you should consider when purchasing EPLI as part of your E&O and loss prevention measures.

1. General Liability policies generally exclude EPLI
2. Wage & hour claims have tripled since 1997
3. 60% of claims come from former employees
4. Average defense cost is $150,000
5. 47% of verdicts are between $100-$150K
6. EEOC listed over 93,000 complaints in 2011
7. Claims can come from vendors and clients

The financial impact from an EPLI claim can cripple, or possibly completely dismantle, your business with only one claim. Many of these claims, about 40%, happen to businesses with less than 50 employees. The good news is that EPLI is affordable and easy to obtain.


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