In an era where workplace dynamics are constantly evolving and employee rights are at the forefront, safeguarding your business from employment-related claims is more critical than ever.
The U.S. Equal Employment Opportunity Commission (EEOC)'s latest annual report reveals a sobering reality: workplace discrimination complaints are on the rise.
In fiscal year 2023, the EEOC reported a 10% increase in discrimination charges, handling over 81,000 new cases. The agency also filed a record-breaking 143 new lawsuits, a 50% increase from the previous year.
No company, regardless of size or industry, is immune to the risk of employment-related claims. As the workplace landscape continues to evolve and employee rights gain prominence, safeguarding your business against these claims is paramount. Even the most well-intentioned employers can face allegations of discrimination, harassment, or wrongful termination.
The High Stakes of Employment-Related Claims
The costs associated with defending against such allegations can be significant, including legal fees, settlements, and potential judgments. The EEOC's data reveals the stark financial impact: in 2023 alone, they recovered over $665 million for victims of discrimination. Beyond the monetary losses, the reputational damage from such claims can be equally devastating, impacting employee morale, recruitment efforts, and even customer relationships.
EPLI: Your Shield Against the Storm
Employment Practices Liability Insurance, or EPLI is designed to safeguard your company from the financial impact of employee lawsuits alleging discrimination, harassment, wrongful termination, and other workplace issues. It typically covers defense costs, settlements, and judgments, providing a crucial safety net against the often-staggering legal expenses associated with claims such as:
- Discrimination (based on age, race, gender, religion, disability, etc.)
- Sexual harassment
- Wrongful termination
- Retaliation
- Breach of employment contract
- Employee benefits mismanagement or denial
- Invasion of privacy
- Libel and slander
EPLI: More Than Just Insurance
Many business owners mistakenly believe their general liability insurance covers employment-related claims. However, most standard policies specifically exclude EPLI coverage. It's a crucial gap that can leave businesses exposed to significant financial risks.
Moreover, EPLI offers more than just financial protection. Many policies include access to valuable risk management resources, such as legal helplines and online training programs. These tools can help businesses proactively mitigate risks and create a more positive workplace culture
EPLI for Every Business
Whether you're a small business with a handful of employees or a large corporation with thousands, EPLI offers valuable protection tailored to your needs. While the coverage basics remain the same, the policy limits and premiums will typically vary based on the size and risk profile of your company.
At Flood and Peterson, we understand that no two businesses are alike. That's why we take the time to understand your unique risks and challenges and find an EPLI solution that aligns with your specific needs and budget.
Invest in Your Future, Protect Your People
In today's complex legal and regulatory environment, EPLI is more than just an insurance policy—it's a proactive risk management strategy. By having EPLI in place, you are not only protecting your business's financial well-being but also demonstrating a commitment to creating a safe and equitable workplace.
Remember, EPLI policies can vary, so it's crucial to partner with an experienced insurance professional like Flood and Peterson who can assist in finding the coverage that best suits your needs.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal or insurance advice. For specific advice regarding your business insurance needs, please consult with a qualified professional.