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“That will never happen to me!”- an EPLI story

The last three business owners to say this to me (guess what happened)…it happened to them.


What is Employment Practices Liability Insurance (EPLI)?


EPLI is commonly used as coverage when an employee sues the employer for various causes including but not limited to age discrimination, gender discrimination, wrongful failure to hire, harassment, sexual harassment, wage discrepancy and wrongful termination.  Wrongful termination seems to be the most popular.


A good EPLI policy covers defense costs, expenses and settlement.


Why are wrongful termination cases so popular?   


My clients say that a great employer forms a connection to his/her employees.  No matter how strong the connection, the connection is likely gone after you tell your employee that you no longer trust them and/or need them.  Now the uncontrollable factors have all the power to persuade the employee to take action.  The uncontrollable factors include all of those people around the terminated employee.  That could be a Mom who thinks her son is perfect and you’re a bad person for firing her angel.  That could be an Uncle who loves his darling niece and knows a guy who knows a guy who was paid buck bucks for being wrongfully terminated.  Or, they could just have access to Google.


Protection is very inexpensive and it could save your company.


For FXG the ISP or IC, the rough average for $1,000,000 of EPLI coverage with a retention amount of $2,500 is about $1,300 for the year.  If you are sued or threatened to be sued, coverage can allow you to sleep at night and run your business as usual while the insurance company protects you.  If you don’t have coverage then you may acquire your own attorney at your own expense and pay for settlement which could be an enormous amount of money.


Now that you know about EPLI coverage, will you call me for a quote?  Or, will you be like the other three business owners that said, “That will never happen to me.”

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