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EMPLOYMENT PRACTICES LIABILITY INSURANCE

Employment Practice

Employment Practices Liability Insurance Des Moines?

Are you searching for Employment Practices Liability Insurance in Des Moines? As an employer in today’s litigious society, protecting your business from employee lawsuits is essential. Employment Practices Liability Insurance (EPLI) offers critical coverage for businesses of all sizes.

Why Your Des Moines Business Needs EPLI

Employee lawsuits are on the rise. Over the past 20 years, claims have increased by 400%, and wrongful termination suits have jumped by more than 260%. Surprisingly, you are now more likely to face a lawsuit from an employee than to experience a fire at your facility.

Small businesses are not immune. About 41.5% of employee lawsuits target companies with fewer than 100 employees. The financial impact can be severe, with average out-of-court settlements at $75,000 and jury awards averaging $217,000.

 

Despite these risks, nearly 70% of businesses do not carry Employment Practices Liability Insurance. This oversight can be costly.

Common EPLI Claims in Des Moines

The top trending Employment Practices Liability Insurance claims include:

  • Pregnancy Discrimination: Employers must comply with the Pregnancy Discrimination Act and cannot discriminate against pregnant employees or applicants.
  • Illegal Background Checks: Ensure all background checks follow the Fair Credit Reporting Act and state laws. Written permission is required for credit checks.
  • Unpaid Internships: Follow Department of Labor guidelines to distinguish interns from employees. Include an educational component and avoid assigning regular employee tasks.
  • Genetic Discrimination: The Genetic Information Nondiscrimination Act (GINA) prohibits using genetic information in employment decisions.

What Does EPLI Cover?

Employment Practices Liability Insurance in Des Moines protects your business from claims such as:

  • Wrongful termination
  • Harassment (including sexual harassment, bullying, and discrimination)
  • ed on age, gender, race, or disability
  • Breach of contract
  • Emotional distress
  • Statute violations, wage and hour disputes, wrongful denial of workers’ compensation, libel, and slander

The Cost of Not Having EPLI

Legal defense is expensive, even if you win. Court costs and legal fees can range from $10,000 to $200,000. EPLI premiums are typically a fraction of these costs and provide peace of mind.

Is Your Business Covered?

Many business owners mistakenly believe their standard policies cover employee lawsuits. However, without a dedicated EPLI policy, your business is exposed. Industry studies show only 23% of businesses with fewer than 100 employees have EPLI coverage.

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Employment Practice Liability Insurance

What Is Employment Practices Liability Insurance?

Employment practices liability insurance, commonly referred to as EPLI insurance, is specifically designed to protect employers from lawsuits brought on by employees. It provides coverage for many situations that general liability insurance does not.

Even lawsuits that are thrown out of court or that are won by your company can be expensive, due to the high cost of securing legal defense. Therefore, this insurance coverage is very important as financial protection for your business enterprise.

Not Having Employment Practices Liability Insurance Can Cost Your Business

Lawsuits are not only expensive-they are also stressful. Resolution can take 18 to 24 months; a lawsuit will have an effect on your personal and business life for a long time. When it comes to expenses, the cost of a lawsuit can be daunting. According to the law firm of Murphy Austin Adams Schoenfield LLP, here are average court costs and legal fees when:
  • Average court costs and legal fees when settled out of court: $10,000 to $50,000
  • Average court costs and legal fees when the case is dismissed: $10,000 to $15,000
  • Average court costs and legal fees when the case goes to trial: $150,000 to $200,000
The cost of EPLI insurance is a fraction of what you will pay if you end up on the losing side in a lawsuit. EPLI premiums will vary depending on a number of factors:
  • The number of employees
  • The amount of coverage purchased
  • Whether your company has anti-discrimination and anti-harassment human resource policies policy in place
  • Whether your company has had an EEOC complaint or lawsuits filed against it in the past
Employment Practices Liability Insurance will easily pay for itself if you are sued even once.

Why Your Business May Not Be Covered

Don’t be fooled, unless you have an EPLI policy, your business is not covered against employee lawsuits. According to an industry study, 6 out of 10 non-buyers of EPLI coverage mistakenly think they are protected under other policies.
If you are not carrying an EPLI policy, your business is not alone. A study done by Advisen found that only 23% of companies with fewer than 100 employees purchase EPLI insurance; that number is 34% for companies with 500-700 employees and 40% for businesses that employ over 1,000 people.
Employment practices liability insurance provides compensation for losses caused by employee lawsuits. All court costs and legal fees are included in coverage. EPLI insurance protects your business from the following and more:
  • Wrongful termination: Statistics show that this is the most common claim brought against employers. According to the EEOC, it is illegal to terminate an employee on the basis of age, race, national origin, gender, or disability. A business can also be sued if they fire an employee for:
  • Taking a leave of absence under the Family Medical and Leave Act (FMLA).
  • Reporting wrongdoing to the authorities under the Whistleblower Protection Act.
  • Harassment: In most harassment cases, the issue is sexual harassment, but cases of violence, bullying, and issues based on race, color, age, and religion all fall into this category. The harassers can be senior managers, supervisors, co-workers, agents of the employer, or even non-employees. If the employee can prove the company was aware of the issue and ignored it or did not take adequate steps to solve the problem, the business may face additional fines and penalties if the case makes it to trial. Prevention is the best way to eliminate harassment at your business. It should be clearly communicated to all employees that harassment will not be tolerated.
  • Discrimination: Discrimination cases involve employees who are turned down for employment or denied promotions or raises based on age, gender, race, national origin or disability. If an employee can show a trend of discrimination in your business, they may have a winning case on their hands.
  • Breach of contract: Violating the terms of an employee’s contract can result in a lawsuit against your company. Proof of damages to the employee due to the breach will often result in a victory for your former employee.
  • Emotional distress: If employees feel that your business is fostering a hostile environment, or if they are subjected to overly stressful situations in the workplace, they may sue. While these cases can be very difficult to prove, the legal fees for defending the case can be substantial.
  • Other violations: EPLI coverage doesn’t end with these types of claims. It offers protection for suits regarding statute violations, wage and hour violations, wrongful denial of workers’ compensation, loss of consortium, false positives from drug tests, libel and slander.
Densmore Insurance Strategies, Inc. provides Employment Practices Liability Insurance to small businesses near Ankeny Iowa, Altoona Iowa, Bondurant Iowa, Des Moines Iowa, West Des Moines Iowa, Johnston Iowa, Waukee Iowa, Grimes Iowa, Polk City Iowa, Pleasant Hill Iowa, Norwalk Iowa, Huxley Iowa, and Urbandale Iowa. We are licensed to serve Iowa, Illinois, Nebraska, Florida, Missouri, Arizona, Texas, and Tennessee.

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You deserve excellent customer service for your small business – and we can provide it!

Protect your business from employee lawsuits with Employment Practices Liability Insurance in Des Moines. Get expert coverage for wrongful termination, discrimination, and more. Request a free quote today!

Request a free quote today you can contact us at 515-967-3390.

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