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Risk Management: Loss Control


EPLI - Guide To Employee Discrimination Lawsuits (2017 Hiscox)

Employment discrimination lawsuits now hit small business. Request a free Guide to Employee Lawsuits to learn more.

What if you opened your mail today and found a discrimination complaint had been filed against you with the State Human Rights Commission or US Equal Employment Opportunity Commission (EEOC)?  Or worse yet, a civil lawsuit for discrimination had been filed. Your worst day ever would likely stretch to your worst year ever!

Discrimination complaints flow out of State and Federal laws against employment discrimination. They apply to all types of work situations, including hiring, firing, promotions, training, wages, and benefits. These laws are complicated and with the recent #metoo movement complaints are on the rise. 

The 2017 Hiscox Guide to Employee Lawsuits reports that US companies had at least a 10.5% chance of having an employment charge filed against them in 2016, the most recent year statistics are available. A representative study of 1,214 closed claims reported by small to medium-sized enterprises (SMEs) with fewer than 500 employees showed that 24% of employment charges resulted in defense and settlement costs averaging a total of $160,000. Even though 76% of cases resulted in no payment for judgments, the defense cost and the time, energy and resources expended can significantly impact any business. On average, those matters took 318 days to resolve.

Is special insurance needed?  YES!  Employment discrimination claims are specifically excluded on Commercial General Liability policies (that primarily cover accidental bodily injury or property damage liability claims on your premises or because of your business operations or products).  A newer, specialized form of insurance called “Employment Practices Liability” (EPLI) has developed to help employers insure the litigation costs and judgments resulting from employment discrimination claims.  

Request a quote and a free copy of the 2017 Hiscox Guide to Employee Lawsuits from American Insurance. Learn three ways to protect your business in the event of a complaint and what constitutes discrimination, how charges are brought, the high-risk states for lawsuits, key state laws, the most common type of discrimination and the cost of employee lawsuits. Request your free copy by emailing LossControl [at] Am-Ins [dot] com or call your American Insurance agent at (208)746-9646 or text us at (208)518-0823 or contact us online for more information and a quotation.

Click to download report 2017 Hiscox Guide to Employee Lawsuits.

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The content of FAQ articles are general in nature and are not intended as a substitute for professional legal, financial, or insurance counsel for individuals. Insurance coverage forms vary by issuing company and by state. For specific advice contact us.