reprinted with permission – Insurance Agents and Brokers
Business owners and principals are job creators, so they should be revered…. Right? But the reverence often ends when an employee (past, present or potential) feels that he or she has been wronged. Employment-related lawsuits – legitimate or otherwise – filed against a business are costly to defend and far more costly if a settlement is required or damages are awarded to the plaintiff.
Consider the following statistics:
- Employee lawsuits have risen approximately 400 percent over the last 20 years.
- Of these, wrongful termination suits have risen more than 260 percent.
- 41.5 percent of these suits were brought against private employers with fewer than 100 employees.
- When employee lawsuits go to trial, the employee wins more than 63 percent of the time.
- The average cost to settle an employee lawsuit out of court is $75,000.
- The average amount awarded to employees in jury trials is $217,000.
Businesses need a comprehensive Employment Practices Liability Insurance (EPLI) policy because standard business liability insurance policies often do not provide sufficient coverage for costs associated with employee lawsuits. Ask us to find the right combination of coverage and cost to affordably protect your business.