As a business owner, you've worked hard to build your company and create a positive workplace. But even with the best intentions, your business could face an employee lawsuit that threatens everything you've built. Employment-related lawsuits are now three times more likely to occur than a fire at your business, and they can be just as devastating to your company's survival. That's where Employment Practices Liability Insurance (EPLI) comes in – it's your protection against employee claims that could otherwise devastate your business.

Why Businesses Need EPLI

Many business owners mistakenly believe their general liability insurance covers employment claims. It doesn't. EPLI specifically protects against claims of discrimination, harassment, wrongful termination, sexual harassment, and other employment-related issues. Most importantly, it helps pay both legal defense costs and settlements if you face an employee lawsuit, and some policies also provide a defense sublimit for wage & hour claims. 

Common Business Scenarios:

• A manager makes an innocent but inappropriate comment that leads to a harassment claim.
• You fire an underperforming employee who then claims discrimination.
• You choose not to promote someone who later claims it was due to their age or gender.
• An employee feels they're being treated unfairly and files a hostile workplace claim.

Protecting Your Business

Getting EPLI coverage isn't about insurance – it's about protecting the business you've worked so hard to build. The cost depends on factors like your number of employees, previous claims, and type of business. But whatever the cost, it's a small price to pay compared to facing an employee lawsuit without protection.

A single employment claim can cost an average of $70,000 to settle – not counting legal fees. For businesses, this could mean the difference between staying open or closing their doors. Even if they win the case, the legal costs alone could drain a company's resources.

Don't wait until you're facing a claim to think about EPLI. Talk with us today to learn about EPLI options for your business. In today's business environment, it's not about whether an employment claim will happen – it's about being prepared when it does. Protect your business, your employees, and your peace of mind.