What Will it Cost If Your Employee Wants to Sue You?
Hey there, fellow business owners!
Today, we’re diving into a topic that’s essential for safeguarding your company: Employment Practices Liability Insurance, or EPLI for short. Whether you’re running a small family business or maintaining a larger company, understanding EPLI insurance could be the key to protecting your business from potential legal troubles related to employment practices.
Let’s start with the basics.
In simple terms, EPLI insurance is like a safety net for your business when it comes to employment-related claims. These claims could range from allegations of discrimination and harassment to wrongful termination and beyond. Essentially, EPLI steps in to cover the costs associated with defending your business against such claims, including legal fees and potential settlements.
Why You Need EPLI Insurance:
- Legal Protection: Facing a lawsuit from an employee can be financially draining for any business. EPLI insurance offers a layer of protection by covering the expenses involved in defending against employment-related claims. Did you know if an EPLI case isn’t dismissed, you could be looking at thousands and thousands of dollars? For businesses of all sizes, the average jury award is about $250,000; if a case settles, the judgment averages $75,000. And the cost of defense averages about $120,000 per claim. If a business loses its case, it must also pay for the claimant’s legal fees – averaging $200,000.
- Peace of Mind: Running a business is challenging enough without worrying about potential legal battles. With EPLI coverage in place, you can have peace of mind knowing that you have a plan in place to address employment disputes if they arise.
- Protecting Your Reputation: A lawsuit can not only hurt your finances but also damage your company’s reputation. EPLI insurance helps you manage employment disputes discreetly, minimizing the negative impact on your brand image.
How Do I Buy EPLI?
Getting EPLI coverage is a straightforward process. You work with an insurance agent to customize a policy that fits your business needs. Then, if a claim is made against your company, you notify your insurer, and they handle the rest, including legal proceedings and settlement negotiations.
Employment-related claims are a reality for businesses of all sizes. However, with EPLI insurance, you can take proactive steps to protect your business from the financial and reputational risks associated with such claims. So, if you haven’t already considered EPLI coverage for your company, now might be the perfect time to explore your options and ensure that your business is well-prepared for whatever challenges come its way.
If you’re ready to learn more about EPLI insurance and how it can benefit your business, don’t hesitate to reach out to us! We are here to answer your questions and help you find the right coverage for your unique needs. Let’s work together to keep your business protected and thriving!