Protecting against Employment Practices Liability (“EPL”)

In the last two decades, the frequency of employment-related lawsuits has increased an outstanding 400 percent and lawsuits for wrongful termination have risen an alarming 260 percent. These lawsuits can cause significant stigma to a law firm and its staff, impose difficult demands of time and energy, and cause tremendous financial losses.

Given the current trends and increases in claims, can your law firm afford to defend itself against alleged wrongful employment practices?

Types of EPL Exposures
  • Racial Discrimination
  • Age Discrimination
  • Harassment
  • Third Party Discrimination / Harassment
  • Wrongful Termination
  • Retaliation
  • Breach of Employment Agreement
  • Hostile Work Environment
  • Workplace Tort
  • Sexual Discrimination

 

Most law firm malpractice policies do not cover these types of claims.
The Danger of EPL Exposure to Law Firms
Did You Know:
  • Companies faced with employment lawsuits can incur costs that range from $200,000-$300,000 per lawsuit.
  • Notably, 41.5% of employee lawsuits are brought against private companies who have less than 100 employees.
  • Sexual harassment charges filed with the U.S. Equal Employment Opportunity Commission (EEOC) are up 13.6 percent in the past year, even as overall employee charges are trending downward.
  • Retaliation was the most frequently filed charge filed with the EEOC, followed by race and disability.
  • The EEOC also received 6,696 sexual harassment charges and obtained $46.3 million in monetary benefits for victims of sexual harassment in 2017.
  • Over the past few years, wage and hour lawsuits have been the most active type of litigation in the employment law field.
  • EPLI policies cover certain losses incurred by employers in connection with claims of a “wrongful act” or “wrongful employment practice.”
Fortunately, we offer employment practice liability insurance (“EPLI”) designed for small to medium sized law firms.

The OSBA Insurance Agency, a subsidiary of OBLIC, has partnered with selected insurers to offer broad coverage and comprehensive risk management tools, including employment training programs, expert advice, compliance guidance, and online resources.

EPLI coverage provides protection for a law firm and its employees against claims made by current, former, potential employees, or third parties for alleged discrimination (based on age, sex, race religion, color and national origin), wrongful termination, sexual harassment, and other employment-related allegations.

Our EPLI coverage includes:
  • Defense expenses
  • Wage and Hour (Sub-limits)
  • Broad insured coverage covering principals, managers, partners, directors & officers
  • Coverage for claims asserted by third parties
  • Immigration practices violations defense coverage
  • Regulatory proceedings
  • EEOC Proceedings
  • Arbitration
  • OSHA citations
  • Labor or grievance
  • Damages
  • Judgements / Settlements
  • Back Pay
  • Front Pay
  • Civil fines imposed under HIPAA

Employee lawsuits are becoming much more common, making employment practices liability insurance (EPLI) a necessity for businesses large and small.

If anyone should understand the importance of managing risks, it is a law firm’s partners and executive committee members. The risk your law firm has is real and significant.

Contact us and let us show you how you can quickly protect your law firm from catastrophic EPL lawsuits.

Additionally, our insurance partners provide services including HR Program Development, HR Advice & Guidance, HR Training, Harassment Training, Employee Complaint Hotline, and an array of online materials as part of your employment practices liability insurance.

 

For more information, contact an OSBAIA Agent:
Rick Creel
Vice President, Sales and Business Development
(614) 572-0616
Tammy J. Thornton
Senior Sales Executive
(614) 572-0616
Danna Blackburn
Sales Executive
(614) 572-0616