Why Your Business Needs Coverage
- You make decisions everyday that impact your
employees: hiring, compensation, promotions,
accommodating disabilities, terminations and more. Each
of these can lead to a claim for a wrongful employment
practice if not handled correctly.
- Both defense costs and settlement amounts for
employment practice claims can have a serious financial
impact on a company. Employment practices insurance
is critical to protect organizations from the potentially
large cost of employment litigation.
- Even an organization with good human resources
policies and procedures in place can be sued, and the
cost of defending a claim can be enormous. It is not
uncommon for legal fees associated with winning an
employment lawsuit to exceed $250,000.
An Employment Practices Liability (EPL) policy covers your organization for allegations brought by employees alleging violations of employment law. It is designed to address an organization’s exposure to most employment-related claims, on a first and third-party basis.
In the event of an employment-related claim or Equal Employment Opportunity Commission (EEOC) charge, an EPL policy can protect your company from costly defense expenses as well as adverse judgments or settlements.
Employment risks are real and varied, and claims of wrongdoing are taken seriously in a court of law. The impact of these claims can be harmful to a company’s bottom line, regardless of their legitimacy.
Furthermore, these issues don’t have to reach a court of law to have a financial impact on your company. Administrative actions and complaints, mediations, arbitrations and settlements often prove costly.
Without an EPL policy, your company would have to not only find counsel suited to defend these claims but pay the costs out-of-pocket.