Top 5 Reasons Why a Small Business Needs EPLI
In today’s uncertain business climate, lawsuits are a reality and are increasing. The risks to small businesses that do not have an internal Human Resources (HR) department are even greater. One nuisance lawsuit from a disgruntled employee can put your entire business at risk, or at least slow down your companies productivity significantly.
Employment Practices Liability Insurance (EPLI) helps mitigate these risks. EPLI covers your business for things like sexual harassment, wrongful termination, discrimination and other workplace torts.
Top 5 reasons your business needs EPLI
- Employee lawsuits have risen 400% in the past 20 years to 6.5 claims per 1,000 employees
- Employees win 67% of trials in Federal Court and average awards are nearly $500,000 not including legal fees
- The average cost to settle an employee lawsuit is over $300,000
- Employee lawsuits are generally excluded from standard general liability policies
- Businesses with 15 to 250 employees are named in employee lawsuits more often than larger firms due to inadequate HR practices, and having valuable unprotected assets
Utilizing the services of a Professional Employer Organization(PEO) can mitigate some of these risks, provide you with EPLI coverage and more.