Businesses can take great precaution to avoid incidents and accidents in the workplace, but the one thing businesses can never completely prevent are lawsuits from former, current, or even prospective employees. A single lawsuit can cost a company thousands of dollars in just attorney fees, not to mention court costs, settlements, and judgments that could soar into the millions. What can a company do to avoid a financial disaster brought on by a lawsuit? Employment Practices Liability Insurance offers financial protection to companies facing lawsuits, as well as business owners, managers, directors, officers, and employees named in lawsuits. Today's blog post takes a deeper look at Employment Practices Liability Insurance (EPLI) and why all businesses with employees need it.
What Does EPLI Cover?
Employment Practices Liability Insurance provides financial protection for companies facing lawsuits filed by current, former, and prospective employees. Companies may be accused of discrimination, harassment, breach of contract, slander or libel, negligence, or wrongful termination, and any of these lawsuits can be devastating to a business. EPLI coverage serves two key purposes by protecting business assets threatened by lawsuits and allowing companies to have the financial resources to properly defend themselves in the court of law.
The High Cost of Lawsuits
One of the biggest advantages to having EPLI coverage is that lawsuits from current, former, and potential employees are costly and time consuming, even if the lawsuit itself is frivolous or the plaintiff has no substantial case against a company. The costs involved to simply defend a company in court can be astronomical, especially if the case is complex and involves multiple plaintiffs or witnesses, or mountains of evidence. Without EPLI coverage, businesses could face court and attorney fees ranging from the thousands of dollars to the millions of dollars, not including any judgments or settlements that may be issued against the company.
Increase in Discrimination Lawsuits
Another added benefit of securing EPLI coverage is that there are more potential opportunities for lawsuits against businesses because of the many laws protecting individuals from discrimination. In addition to the most common forms of discrimination, such as those based on gender, race, nationality, and religion, there are also laws in place protecting those with disabilities and medical conditions. The Americans With Disabilities Act and Family Medical Leave Act have increased the likelihood for smaller businesses to be hit with lawsuits if their office space is not handicap accessible, or an employee is fired from their job because they are on a medical leave. EPLI can protect businesses from the increased likelihood of discrimination lawsuits.
Aegis Insurance & Financial Services is pleased to offer companies of all sizes and industries outstanding Commercial Insurance coverage, including Employment Practices Liability Insurance, Business Owners Policy, Commercial Property, Commercial Auto, General Liability, Workers Compensation, and Excess Liability coverage. Contact Aegis today at 713-850-7622 for more information, or go online to request a free consultation!