Employment Liability (EPL)

Can your Business afford it's share of the litigation to be paid?

This type of liability coverage protects Business's against the action of the employer. The need for EPLI has been raised due to the increase in lawsuits filed for the following types of claims:
 

Following are some important facts every Business Owner should know about Employment Practices Liability Insurance (EPLI):

• A private company is more likely to have an EPLI claim than a General Liability Insurance or Property Insurance claim.
• 15% of all plaintiff verdicts exceed $1,000,000. The average cost to defend an EPLI claim is $150,000 and the median award is $250,000.
• Nearly 75% of all litigations against corporations involves employment disputes.
• About 65% of employers who have terminated an employee have been involved in a lawsuit.

You can purchase either an "occurrence policy" or a "claims-made policy." More frequently used "claims made" policies, protects the Business Owner only for the period while the policy is effective. Acts occurring within a specific time period (prior-act coverage period) can be covered by Prior-Act Coverage. An "occurrence" policy covers the Business Owner for claims made months or even years after the incident. Even if the claim is reported later, the Insurance Company reviews and pays for any claims made resulting from an incident that took place during the coverage period. Occurrence policy premiums are usually higher than claims-made premiums.

If you would like an analysis of your current Employment Practices Liability Insurance (EPLI) Policy/Coverages, or need to secure an EPLI Insurance Policy right away, Prime Star Insurance Services is there to help. Our highly dedicated and experienced licensed Insurance Specialist's will help you find the best coverages available in the market so that you can feel secure that your Business is protected against any potential risk that may possibly harm your business. Contact us today for a free consultation.