Employees today are keenly aware of their rights and quick to take action when they believe employers violate those rights.
In FY 2023 alone, the U.S. Equal Employment Opportunity Commission (EEOC):
- Received 81,055 new discrimination charges (a 10.3% increase over FY 2022).
- Filed 143 new lawsuits on employees’ behalf (a greater than 50% increase).
- Obtained more than $22.6 million for individuals in litigation.
Your business clients need Employment Practices Liability (EPL) Insurance, or EPLI. Without it, they risk incurring substantial expenses in employment-related claims.
At ProWriters, we’ve made obtaining an EPLI quote for your clients simpler and easier than ever. Watch Zane Goldthorp, our director of broker development, talk with broker Angelina Heckman about how we’re transforming EPL Insurance broking, and then read on for more information about this critical business coverage.
Why Do Businesses Need EPL Insurance Coverage?
EPL Insurance is specifically designed to protect businesses against such employee-related claims as wrongful termination, discrimination, sexual harassment, and other employment-related issues.
No company, whatever its size, should take the threat of an employee filing a lawsuit lightly. Employees who feel aggrieved, justifiably or not, can and often do seek legal recourse. Without proper protection, businesses can find themselves facing exorbitant legal and defense costs, reputational damage, and even financial ruin.
“EPL policies are important to have in place,” explains Heckman, “especially for smaller businesses. Out-of-pocket costs in settlements are rising. They’re currently ranging between $75,000 to $200,000, which can be tough for a company to bounce back from.”
What Exactly Does EPL Insurance Cover?
The costs associated with defending an employment practices lawsuit can be enormous. Legal fees, settlements or court-ordered punitive damages, and potential harm to a company’s reputation can add up quickly. Without EPL Insurance, these expenses can be detrimental to a business’s financial stability. Even bankruptcy may be a possibility.
As Heckman explains, an EPLI policy breaks down into two simple parts:
- First-Party Liability covers businesses from allegations from their employees, such as wrongful termination or failure to promote.
- Third-Party Liability covers allegations arising in the course of business from anyone else, such as customers or vendors. Third-party claims usually deal with allegations of discrimination or harassment.
“If you have a well-rounded EPL policy,” adds Heckman, “you should have some supplemental coverages included. Typically, I look for wage and hour coverage, which would help defend the company against allegations of unlawful payment to an employee.”
What Else Does EPL Insurance Coverage Include?
Your business clients may have asked you, “Is EPL Insurance worth it?” You can remind them the financial protection and peace of mind these policies afford is only the beginning.
EPLI coverage also provides businesses with expert guidance and support through the entire claims process. EPL Insurance carriers often have teams of experienced professionals who specialize in employment practices. These experts help businesses navigate complex legal waters, ensuring adherence to laws and regulations and minimizing the risk of future claims.
Finally, carriers also usually offer Human Resources (HR) assistance. Heckman says businesses that lack HR departments or that use a third-party HR service often don’t realize they can contact their EPLI carriers to consult with a live person about potential employee issues. Carriers also frequently offer such risk management tools as sexual harassment training and templates for developing an employee handbook.
Get Your Next EPLI Quote More Easily With ProWriters
In the past, obtaining the best EPLI quote for a business client could be a time-consuming, labor-intensive process. It could involve manually inputting the same information into multiple carriers’ systems and spending hours comparing various policy limits and conditions.
Now, however, thanks to ProWriters’ Digital IQ Platform, registered brokers can generate multiple EPLI quotes from leading insurance companies in mere minutes. Participating EPL Insurance carriers include Coalition, Counterpart, Great American, Axis, and ERisk.
What’s more, your quotes come ready for at-a-glance, side-by-side comparison. You can find the policy that provides your client exactly the level of broad coverage they need, at competitive rates, more quickly than ever.
In turn, you’ll be able to serve more clients and build your book of businesses far more efficiently and effectively.
Take your next step toward more success with EPLI quotes today. Register for ProWriters’ Digital IQ Platform now.