Oklahoma Employment Practice Liability Insurance (EPLI)
What Is Employment Practice Liability Insurance (EPLI)?
Employment Practice Liability Insurance (EPLI) is a form of coverage that helps protect businesses against legal rights violation claims by workers and employees. We live in a culture that continuously sees more and more of these lawsuits brought into fruition in the public domain. Employers of all sizes and types face a variety of employment practice exposures when violations of employees legal rights are brought into question. In 2018, the Equal Employment Opportunity Commision “secured approximately $505 million and other relief for over 67,860 victims of discrimination in the workplace.”
Still not convinced that you need EPLI? Almost 75% of litigation claims against companies involve employment disputes.
Some of the most common discrimination issues EPLI covers are:
Age
Religion
National Origin
Gender
Pregnancy
Breach of employment contract
Wrongful termination
Failure to employ or promote
Wage and hours
Why Does My Business Need Employment Practice Liability Insurance?
If you’re a business that’s in the position of hiring employees, then you are likely to need EPLI coverage. Candidates for job positions and former employees are even a risk for having the capacity to exercise discrimination complaints against your business. The number of harassment claims is increasing quickly due to the propagation of social media serving as a platform for formerly voiceless segments of the population to take a grandstand and engender others and even whole movements to ensue.
How Much Does Oklahoma Employment Practice Liability Insurance Cost?
To determine the cost of EPLI, these three factors have the most significant impact:
The number of employees at your business.
The type of business you have.
What your company’s history of lawsuits looks like.
What Does Employment Practice Liability Insurance Not Include?
This insurance does not provide coverage if a company is being sued for an illegal act.
What Does Employment Practice Liability Insurance Include?
EPLI covers the cost of defending your business against potential lawsuits or accusations brought against it by workers. Some of these instances include:
Failure to promote
Sexual harassment
Invasion of privacy
Wrongful termination
Wrongful demotion or employee disciplinary actions
Discrimination
Negligent evaluation or decisions
EPLI In Numbers
Nearly 60% of business owners without EPLI believe that their business is protected from the coverage offered by EPLI, when in reality they are often mistaken.
More than 40% of EPLI claims are against employers with 15-100 employees.
Companies with 100 employees or less can expect an EPLI claim every three years.
23% of all small businesses purchase EPLI.
Of the EPLI claims filed, 51% will result in a win by the plaintiff.
47% of plaintiff verdicts are between $100,000 and $500,000. The average cost of defense is $150,000.
93,366 discrimination charges are filed against employers each year.
