US Pro Insurance Services
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Employment Practices Liability Insurance – What’s In a Number?

Statistics is an important tool.  Extremely useful for gaining support for or against making a decision, they really are much more than that.  Statistics tell a story about the subject matter, and in EPLI, the statistics are very revealing indeed.

We use a lot of numbers and percentages, and sometimes they are used so much that we just glaze over them.  In one ear and out the next.  But today we will break down some important numbers and the real-life impact they have on your customer’s everyday business life:


65% of businesses today are buyers of EPLI.  35% of businesses do not buy EPLI.  This is a risky bet for those in the latter group based on many of the below facts.


The average loss for an EPLI claim today is now exceeding $100,000.  Third party claims, wage and hour disputes, high-income wage earner suits, spikes in EEOC complaints, and litigious attitudes of younger employees are driving this figure up.


2016 statistics from the EEOC found there were 91,503 total charges of workplace discrimination that were filed.  These charges resulted in penalties and awards that totaled more than $480 million dollars in damages


Many are surprised to find that 4 in every 10 lawsuits filed for EPLI actions are filed against small business with less than 100 employees.  This is only 6% less than those filed against large companies with more than 500 employees.  Yet, many of those in the 35% bucket who do not buy EPLI today are these same small businesses.  Fascinating.

$75,000 vs $217,000

So why do you really buy EPLI?  The real reason is to pay for the defense costs when the claim does come.  This is not more plainly seen than comparing the settlement to the trial.  An EPLI claim that is settled averages $75,000 in damages awarded.  However, one that goes to trial instead is almost 3 times that amount, averaging $217,000.  There is a real value into having an effective insurance policy that can properly defend you in the event of a claim.


The biggest problem of all is the turn of the century.  With the turn of the century also came an increase in claims.  Employees in 2018 are far more likely to bring suit against their employer than they were in the 1990s.  Consider that within the last 20 years, overall employee lawsuits are up 400%, and wrongful termination lawsuits have increased by 260%.  This means that your chances of being sued for an employment-related matter are now greater than having any kind of fire in your property.

The top reasons employers were sued in 2017 are as follows:

  • 13% sexual harassment
  • 11% wrongful termination
  • 11% retaliation
  • 10% discrimination
  • 8% workplace bullying/intimidation

All of these statistics combine to paint a very clear picture of the need to have the right coverage in place.  Share this information with your customer so they can make better decisions about how to properly disaster plan for their business.