Employment Practices Liability Insurance (EPLI) provides coverage
for California business in the event that an employment practice
claims is brought upon them. EPLI covers the cost of defense for
discrimination and harassment actions and other state and federal
employment-related claims.
Why would I, a California business, need to purchase Directors and
Officers coverage?
Statistics show that businesses in California are more likely to
face an employment claim than a property or general liability claim,
yet many companies are unaware of this coverage. Once these claims
manifest, they become an incredible draw on a business's assets.
Out-of-court settlements in employments cases average $40,000. The
median compensatory award is $218,000, with 10% of wrongful
termination claims resulting in awards in excess of $1,000,000. The
average cost of defense is in excess of $45,000. Many employers
believe their general liability or workers' compensation policies
protect them in these situations, the truth is, these policies do
not.
Example of how Employment Practices Liability Insurance coverage can
protect your company.
1. Your California business is sued for discrimination after not
hiring a person of Latin descent and hiring a Caucasian. In a
scenario such as this, your EPLI insurance policy can provide you
with legal defense assistance.
2. A supervisor in your California business is accused of sexually
harassment by an employee. Your EPLI insurance policy will provide
you with coverage for defending your supervisor in the case.
3. An ex-employee claims that you fired them in an act of
retaliation. Your EPLI policy will provide coverage for your
California business in this scenario
