California Business and commercial insurance trends as I see the California Insurance Market evolve from the perspective of a independent California commercial insurance broker. Industries I have clients in include non-profits, manufacturing, commercial property owners, technology and software to name a few. I'll be discussing the trends in California Workers Compensation, Property Insurance, E&O, Errors and omissions, Directors and officers, D&O, EPLI, and other coverages
Wednesday, June 24, 2009
What is EPL or Employment Practices Liability Insurance Coverage?
EPL, sometimes referred to as EPLI, stands for employment practice liability insurance and covers an insured from litigation or action arising out of claims like age discrimination, sexual orientation discrimnation, wrongful termination and racial discrimination. Though this coverage seems straight forward many companies mis this critical piece in their insurance program because many producers do not understand the coverage and theirfore do not offer it to their clients. This is the fastest growing area of litigation and it is growing with the current economic downturn. With cycles of unemployement reaching beyond the six month mark for many industries unemployed workers are seeking out their former employers to cover their expenses. These claims usually come in the form or some type of wrongful termination or in the form of a workers compensation claim. In the case of the first example coverage under the employment practices liability insurance coverage, the average settlement has risen to over $200,000 and has shown a steady increase ove rthe past few years. Even a small case can easily cost $25,000 as in the following example. A small franchisee of a national chain had an employee who was often late, had a bad attitude on the job and was developing an increasingly unsightly appeareance. The employee showed up late to work and the employer terminated the employee on site. A number of missteps lead to the eventual action, the employee hired and attorney and filed a wrongful termination against the employer. The employee had been using drug and claim the employer wrongfully terminated her without warning. This seemingly clear cut case of personal irresponsibility cost the employeer $6,000 in defense cost and an additional $20,000 in an award that was settled out of court. Employement practices liability coverage would have cost him approximately $1,500 in annual premium.
Employment practices liability insurance coverage is often brought up by a litigator once and action has been filed against and insured, this coverage has a simple application and obtaining EPLI quote can be started online contact us by phone or email.
