4 Reasons Why You Need Employment Practices Liability

4 Reasons Why You Need Employment Practices Liability

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

For more information on employment practices liability insurance, contact McGrath Insurance Group at 800-342-3859 or www.mcgrathinsurance.com

*This article is written for informational purposes only and should not be construed as providing legal advice.