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Employment Practices Liability

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance provides protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. These types of claims are not covered under a general liability insurance policy. 

Statistics show businesses are more likely to face an employment claim than a property or general liability claim:

  • The average amount paid for out of court settlement is $40,000.
  • Defense of an average EPL case, through trial, costs over $45,000.
  • The median compensatory award for EPLI cases is $218,000.
  • 67 percent of all employment cases that litigate result in judgement for the plaintiff.
  • 41 percent of all EPLI claims are brought against small employers with 15 to 100 employees.
  • Six out of ten employers have faced employee lawsuits within the last five years.
  • The U.S. Equal Employment Opportunity Commission (EEOC) announced that in 2009, more than 93,000 workplace discrimination charges were filed with the federal agency nationwide. This is the second highest level ever recorded 

Employment Practices Liability insurance will reimburse against the costs of defending a lawsuit in court, even if a claim is groundless or fraudulent. These policies will also compensate for judgments and settlements. Policies typically do not pay for punitive damages or civil or criminal fines, however.

Located in Torrance, California, ISU-The Olson Duncan Agency was originally established in 1945. We do not work for an insurance company; we work for you. We represent a carefully selected group of financially sound, reputable insurance companies, and we place your policy with the company offering the best coverage at a competitive price.

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