Protections Against Employee Claims

4 Reasons Why Employment Practices Liability Insurance (EPLI) Policies Protect Your Company Against Unforeseen and Unbudgeted Risks

1.  Employment Lawsuits Are on the Rise
In California, court filings increased by 20% over the past decade. In 2009, contract disputes and employment claims rose by 25%.  Lawsuits claiming more than $25,000 increased by 17%.  California businesses can reduce and manage the financial risks of employment claims by purchasing Employment Practices Liability Insurance policies (EPLI).  EPLI policies pay for the defense costs and damages enabling employers to  set their budget for unforseen employment claims.

2.  EPLI Policies Manage the Uncovered Risk of Being Sued
The commercial general liability (CGL) policies that most employers purchase have limited coverage for employee claims of discrimination, retaliation, harassment, and wrongful termination.  EPLI policies cover employment claims that are not covered by standard CGL policies.  Typically, EPLI policies cover the business, executives, officers, directors, managers, and employees.

3.  With EPLI Policies, Your Business Can Take a Stand
Many times, a business is faced with the difficult challenge of balancing the need and the cost to defend itself.  Without an EPLI policy, companies find that they cannot afford to set a precedent valium showing other employees that frivolous claims will be vigorously defended and will not result in a quick payout to a claimant.  With EPLI policies, a company has the choice to settle or fully defend itself against employment lawsuits.

4.  Access to Lawyers Specializing in Employment Claims
While corporate counsel may be well versed in business and some employment law, litigation involves a different set of skills. EPLI policies allow businesses to be represented by experienced trial attorneys who specialize in employment law and who are familiar with the various coverages and limitations that make up EPLI policies.

In today’s business market, employment lawsuits are a real and expensive risk.  EPLI policies are a cost-effective way for companies to protect against the growing risk of employment based claims.

Thank you for your interest in this article.  You should not rely upon it as legal advice. The information contained herein does not create an attorney-client relationship. This article is intended for entertainment and general information purposes only. Laws vary state. Anyone seeking legal advice for a specific situation should consult a qualified lawyer or similar qualified professional in the appropriate state.

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