Top 10 Reasons Why You Should Have Employment Practices Liability (EPL)


1. EPL covers not only actual but also ALLEGED acts of discrimination, harassment, retaliation, wrongful termination and other similar acts.

2. 1 out of 5 employers are sued by former employees every year.

3. Over 40% of EPL claims are against firms with fewer than 100 employees.

4. Some Federal and State employment laws apply to all employers regardless of employee count- any size company has exposure.

5. The Equal Employment Opportunity Commission (EEOC) recorded nearly 100,000 charges in 2010 and obtained more than $417 million in settlements for claimants.

6. The financial ramifications of not having EPL insurance can be crippling, especially for small firms because they do not have the operating budgets to handle the defense costs, let alone settlements of judgments, of an uninsured claim.

7. The medium cost of an EEOC lawsuit in 2010 exceeded $270,000.

8. There is no EPL coverage under other insurance policies such as General Liability (GL). Any endorsement to another policy generally provides insufficient limits, does not provide the breadth of coverage of a separate EPL policy and erodes the limit available for the GL exposure.

9. Since 1997, 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.

10.  Recent Supreme Court decisions have lowered the standard of what constitutes retaliatory treatment. Retaliation now accounts for more than one third of all EEOC charges.

Learn  how The Seltzer Group can help you be more prepared for a disaster.

 The Seltzer Group with locations in Schuylkill Haven, Orwigsburg, and Pottsville, Pennsylvania, serves businesses and individuals locally, regionally, and on the national level. The Seltzer Group is a proud member of the Keystone Insurers Group.

Top 10 Reasons Why You Should Have Employment Practices Liability (EPL) was last modified: August 26th, 2014 by Sarah McGorry