We live in an age where more people are quick to pursue legal action. As an employer, it’s only a matter of time before you experience an employment practices lawsuit for yourself.
There are many reasons as to why an employee might decide to sue his or her employer: discrimination, sexual harassment, retaliation, bullying, wrongful discharge litigation, and more. Here are four reasons why your business needs employment practices liability (EPL) insurance:
- Hiring, compensation, promotions, accommodating disabilities, terminations, and more. Every day decisions are made that can lead to a claim for wrongful employment practice if not handled correctly.
- You are more likely to be sued by an employee than have a property loss. The U.S. Equal Employment Opportunity Commission (EEOC) received 93,727 charges in fiscal year 2013.
- Both defense costs and settlement amounts for employment practices claims can have a serious financial impact on the company. According to the EEOC, 40 percent of EPL claims are filed against employers with fewer than 100 employees.
- Even an organization with good human resources policies and procedures in place can be sued, and the cost for defending a claim can be expensive. On average, legal fees associated with winning a lawsuit can exceed $250,000.
*This article is written for informational purposes only and should not be construed as providing legal advice.