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What’s the cost of NOT having EPLI?

By July 25, 2020March 18th, 2024No Comments
What’s the cost of NOT having EPLI? - Group of Team Members Sitting in a Meeting

According to a recent post by Trusted Choice®, employee lawsuits have risen roughly 400% over the last 20 years. Wrongful termination suits made the most alarming jump, up more than 260%.

In addition, it was also reported that 41.5% of employee lawsuits are actually brought against private companies with less than 100 employees. In contrast, many small to mid-sized business owners think that claims like this are most prevalent in larger corporations. A common question about EPLI (Employment Practices Liability Insurance), is how much does it cost? However, the more pressing question is, what’s the cost of NOT having EPLI?

Most Concerning Fact
It was revealed in a recent survey conducted by Trusted Choice,® that 6 out of every 10 business owners surveyed who did NOT purchase EPLI (Employment Practices Liability Insurance) thought they were protected under other policies. Owners should not be fooled. Unless EPLI is purchased, your business is NOT covered against employee lawsuits.

A Rise in Lawsuit Costs
The cost of EPLI insurance is a very small expense if you compare it to the 23% average increase in lawsuits over the past three years. Win or lose, if an employer is faced with a lawsuit, the expense of defense and possibly settlement, stress, and the time it could take to resolve the case, which on average is 18-24 months, can put a major financial and operational impact on that employer’s business.

Choosing the Right EPLI Policy
All businesses have different needs when it comes to EPLI coverage. Depending upon your industry, the job scope of your employees, and other factors that come into play, business owners need to be sure they are getting the right insurance. The short of it is, if you have employees, it’s a costly mistake to NOT have EPLI to protect your business. Now has never been a better time to learn more. What type of employee claims does EPLI protect your business from? What is covered under a policy? To learn more about EPLI, contact V.F. McNeil Insurance today.

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