According to a recent post by Trusted Choice®, employee lawsuits have risen roughly 400% over the last 20 years, with wrongful termination suits making the most alarming jump, increasing by more than 260%.
Additionally, 41.5% of employee lawsuits are brought against private companies with fewer than 100 employees. Many small to mid-sized business owners mistakenly believe that such claims are more prevalent in larger corporations. A common question about Employment Practices Liability Insurance (EPLI or EPL Insurance) is: How much does it cost? However, the more pressing question is: What’s the cost of not having EPLI?
The Most Concerning Fact
A recent survey by Trusted Choice® revealed that 6 out of every 10 business owners who did not purchase EPLI thought they were protected under other policies. This is a misconception. Unless EPLI is purchased, your business is not covered against employee lawsuits.
The Rising Cost of Lawsuits
The cost of EPLI insurance is minimal compared to the 23% average increase in lawsuits over the past three years. Win or lose, if an employer faces a lawsuit, the expenses of defense and possible settlement, along with the stress and time to resolve the case (which averages 18-24 months), can have a major financial and operational impact on the business.
Choosing the Right EPLI Policy
All businesses have different needs when it comes to EPLI coverage. Depending on your industry, the job scope of your employees, and other factors, business owners need to ensure they have the right insurance. The bottom line is, if you have employees, it’s a costly mistake not to have EPLI to protect your business. Now is the perfect time to learn more. What types 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 (203) 481-2684. Our insurance agents are always happy to help.
