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Employment Practices Liability insurance

Are You Prepared for an Employment Practices Lawsuit?


For More Information Please Contact:

 Beverly Zolnowski



Click here to download a printable PDF.

Did you know that the average number of charges filed with the Equal Employment Opportunity Commission (EEOC) between 1996 and 2004 were nearly 80,000 — per year?*

That monetary awards jumped a whopping 73% between those same years?*

And that the average jury verdict in 2003 was $250,000, an 18% increase over 2002?*

The lesson here is that regardless of the industry you’re in, being an employer can get complicated — fast. Not only do you have to manage employee productivity, but you also have to face a growing exposure when it comes to employment practices liability (EPL).

This is, in part, due to the ever-increasing collection of federal, state, and local employment laws organizations must comply with — from the Americans With Disabilities Act to the Age Discrimination in Employment Act — along with a highly litigious society.

And it’s only getting more complicated. In fact, the EEOC is taking a much more aggressive stance — as illustrated in the previous statistics — in investigating claims, such as harassment, discrimination, wrongful termination, and unfair hiring practices. And there’s no question that a judgment against your organization can have hugely negative financial implications.

You Can Protect Your Organization With EPL Insurance

Our experience has shown that:

• The best way to develop a strong defense is to proactively apply loss prevention strategies.
• With proper intervention, the incidence and severity of claims can be reduced because suspected claims are handled early.
• Even “insured” claims can cost employers money before their insurance deductible/retention is exhausted. Early intervention to claims helps minimize these costs.

While you can never completely eliminate the threat of a lawsuit, you can prepare for one by having the resources you need to not only reduce the likelihood of EPL complaints, but also be able to put a strong defense together in case you get hit with a claim. EPL insurance offers you access to those resources — so you can properly assess and manage your risk proactively.

*Source: Chubb Group of Insurance Companies

This information is advisory in nature. No liability is assumed by reason of the information in this document.

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