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Harassment Discrimination Employment Insurance Protection
If you are an employer, you must be certain to have employment insurance protection in place in order to protect yourself from claims that may be filed against you from your employees. Our society has become increasingly litigious, which means employers are facing growing numbers of lawsuits from current and former employees. Although some of these claims may be frivolous in nature and you may not agree that they are well-founded, you will still have to defend yourself against the claim. Whether you win or lose the lawsuit, you will still have to spend a great deal of money to fight it.
Sexual harassment and discrimination lawsuits are among the most popular types of lawsuits that employers are facing. Even people that you do not hire may file a lawsuit against you by claiming that you utilize discriminatory hiring practices. In addition, employers are being held increasingly more responsible for the acts of their employees, which further emphasizes the need for better insurance.
In response to these types of lawsuits and the need for companies to have protection in place, the industry has developed a specialized type of protection called employment practices liability. Called EPL for short, this type
is designed specifically to help employers with the increase in claims related to employment practices. Through this insurance agencies, employers are also gaining a better understanding of how they can better prevent and defend themselves from these types of lawsuits as well as how to develop better risk management practices.
According to some experts, the amount of employment litigation has increased by a staggering 400% within the past ten years. More and more employees are suing their employers for wrongful termination, discrimination, and sexual harassment. As a result, many small and medium sized businesses can find themselves run out of business. In fact, some statistics show that the average claim that is settled through EPL policies is around $450,000 and that even the frivolous cases tend to cost at least $10,000 when including the legal fees.
When you search for a company to provide you with this special type of liability , it is important to have a good idea of what you are looking for in terms of coverage. In addition, you should keep in mind that the location of the business will have an impact on the terms you will need and the type of coverage you should have. This is because each state has its own laws concerning employment practices and you need to be certain to be adequately covered in your state.You might also consider adding enhancements to the coverage you purchase. For example, you might add an enhancement that provides you with coverage for your defense costs as well as for the actual punitive damages that may be levied against you. Since defending your case, whether you are found guilty or not, can be quite expensive, it can be very beneficial to have this form of coverage in place.
You will also need to determine how much coverage you need. Most small to medium sized businesses get at least $500,000 worth of coverage. It is possible, however, to obtain more or less coverage as you see fit. Keep in mind that lowering your benefits can decrease your premiums, but it can leave you in financial troubles if the judgment against you is more than the benefit your provider provides. If you are ready to start comparing employment policies, take a moment to fill out our online form. After answering just a few simple questions, we will be able to pair you up with a number of companies that can provide you with the exact type of policy you are seeking.