EPLI - Employment Practices Liability Insurance provides protection for an employer against claims made by employees, former employees, potential employees and guests. It covers discrimination (sex, age, disabled guests, race, etc.), wrongful termination, sexual harassment, refusal of service, and other employment-related allegations.

41% of all EPLI claims are brought against small employers consisting of 15 to 100 employees EEOC EPLI Facts for Small Business

  • Statistics confirm an employer is more likely to have an employment claim than a property or general liability claim.
  • The average amount paid for out-of-court settlement is $40,000.
  • Defense of the average EPLI case, through trial, costs over $45,000.
  • The medium compensatory award in EPLI cases is $218,000.
  • 67% of all employment cases that litigate results in a judgement for the plaintiff.
  • 10% of awards in cases involving discrimination and wrongful termination are in excess of $1,000,000.
  • Six out of ten employers have faced employee lawsuits within the last five years.

California Employment Practices Liability Insurance

Employment practices lawsuits have become an accepted part of the workplace in America. These lawsuits are based on allegations of wrongful termination, discrimination, sexual harassment, invasion of privacy, slander as well as a host of others.

The truth is insurance companies lose these lawsuits with alarming frequency and the financial hits are beyond steep. Currently, the average plaintiff's verdict in employment practices lawsuits exceeds $250,000 with 15% of all verdicts breaking the $1 million barrier.

A good chance of losing with huge dollars at risk is a perfect storm for financial disaster as well as people chasing this and, in reality, your participation in their pursuit of the pot of gold. Contractors' unique business model compounds this problem with the use of temporary and seasonal workers, lack of centralized managerial control and less formalized control on harassment and discrimination.

As a professional commercial insurance specialist, I can tell you without hesitation this is an area many insurance agents aren't telling their contracting clients about. As the economy flip flops this makes for far more disgruntled employees or, worse yet, former employees.

Simply put, if you decide to self insure this risk that is certainly your option. Our job is to present you with your options and provide you with ability to make the most informed decision possible. More bluntly put, this is one area where many contractors have a bright "bulls-eye painted on your back" and if your agent isn't talking to you about the real world issues - find another agent. Find an agent who specializes in protecting businesses like yours.

For California Business Owners, this coverage is not being discussed with you often enough. We are the definitive answer for business owners’ Employment Practices Liability.

Grand Commercial Insurance Brokerage LLC LLC 866-925-6288 Ph
Agency License #0G50655, 0F88656



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