By William D. Dyer

The work force is ever changing especially during these tough economic times that have resulted in a rise in employment claims and litigation. Big and small business owners need to protect themselves with EPLI or Employment Practices Liability Insurance that covers them for exposures relating to employment (i.e. discrimination, wrongful termination et al). Business owners don’t have the resources to battle these cases on their own, nor are they prepared to implement risk management practices to avoid them. Obtaining business employment practices liability insurance will cover litigation expenses alleged by anybody from the employee to the third party. EPLI premiums are affordable, with minimum premiums that can be less than $1,000. Here are some facts worth noting that should influence small business owners in the right direction, taken from June 2010′s issue of Best Review.

• Hartford Steam Boiler found two out of three [small business owners] were concerned that their employees will file an employment-related charge against them with only a fraction, who have some type of insurance protection for workplace claims.

• U.S. Equal Employment Opportunity Commission reports that employment claims reached the second highest level ever in 2009, with more than $376 million awarded to employees.

• EEOC statistics also show 81% of claims settle for an amount ranging from $22,400 to $40,500 (excluding defense costs).

The time is now to protect your company from employment claims. Don’t wait, because if you get sued then it is too late to buy coverage to cover that claim. A significant employment or workplace claim can be the tipping that can be the ruin of your business.

HCP National is an Employment Practices Liability, EPL, or ELPI provider or broker for over 16 years. As an EPLI broker we know the risk exposures of employment, and we know how to insure it. This blog does not alter or change coverage, nor is meant as legal advice.

Employment Practices Liability (EPL), also known as Employment Practices Liability Insurance (EPLI), provides coverage for employment-related suits brought against Companies, Directors and Officers, as well as other employees arising from actual or alleged Discrimination, Wrongful Termination, or Harassment.

Claims are brought by:
• Current or Former Employees
• Applicants for Employment
• Third Parties (Non-employees, i.e. customers)
• Governmental Agencies (EEOC)

Insurable Costs included in the EPL policy:
• Legal Fees (for both the Company and Insured Persons)
• Damages (include some limited Punitive Damages )
• Settlements (includes the plaintiff’s attorney expenses)

Employment Practices (EPLI) Wrongful Acts include actual or alleged:
• Violation of any common or statutory federal, state, or local law
prohibiting any kind of employment related discrimination
• Harassment, including any type of sexual or gender harassment
• Abusive or hostile work environment
• Breach of an actual or implied employment contract
• Wrongful deprivation of a career opportunity, wrongful failure or
refusal to employ or promote, and wrongful demotion
• Employment-related defamation, libel, slander, disparagement,
false imprisonment, misrepresentation, malicious prosecution or
invasion of privacy
• Wrongful failure or refusal to adopt or enforce workplace or
employment practices, policies or procedures, solely as respects
employment-related discrimination or harassment
• Wrongful discipline
• Employment-related wrongful infliction of emotional distress,
mental anguish or humiliation
• Retaliation
• Negligent evaluation, negligent hiring, or negligent supervision of
others in connection with any of the above points

Limit of Liability and Premiums for EPL
Capacity has increased with Limits available from $1,000,000 to $20,000,000 for EPLI.
Minimum premiums – $2,500 annually for Privately Held companies with 5 or fewer employees.

The above is a limited discussion of EPLI. HCP National is an EPL, ELPI insurance provider, or broker. This blog does not alter or change coverage, nor is meant as legal advice. HCP uses Rubicon Insurance Services as its service partner. http://www.rubiconins.com/