Every business in Northeast Ohio that has employees or customers is exposed to potential employment practices liability claims. In the year ending December 31 2023 the Equal Employment Opportunity Commission (EEOC) stated there were 81055 charges against employers for discrimination that is more than 220 claims every day. However, according to ISO MarketStance only 4% of businesses have EPL coverage!

Employment Practices Liability Insurance (EPL) should be part of your business insurance and loss mitigation program. Uninsured claims could shutter your business permanently, according to the Society of Human Resource Management the average cost to defend an EPL claim is approximately $160,000.00. While the premiums for EPL vary based on the number of employees’ you have and your interactions with customers and others the value can clearly be seen. How many businesses can afford a $160,000.00 for an uninsured loss.

There are two major parts to most EPL policies, 1^st party coverage and 3^rd party coverage.

1^st Party coverage protects the business against employees and prospective employees claiming their legal rights have been violated. These claims can range from wrongful termination, discrimination, sexual harassment and retaliation-now accounting for 54% of all EEOC filings. Wage and Hour claims can be included in your policy for an additional charge. (typically, there is a sub-limit for these claims) These claims can include minimum wage violations, unpaid meetings and or training and unpaid meals that employees are expected to work through and other forms of “theft of wages”.

3^rd Party coverage protects the business and its employees against customers, clients or vendors who allege that they were discriminated against, sexually harassed by the employees of the business.

Many businesses believe that their General Liability policy will protect them from this type of loss however these losses are excluded making the need for EPLI insurance an integral part of your insurance portfolio. The options within most EPI policies create the need to discuss this valuable coverage with your Trusted Choice Insurance Agent. So, before your current policy expires contact the Trusted Choice Agents at Richey-Barrett Insurance for a policy review.