lose — even if you win. Arbitrating, settling or defending an employment practices case— regardless of its merit — could easily result in five- or six-figure costs.
Smart business owners have Employment Practices Liability (EPL) coverage. Why? The costs of dealing with employment practices liability charges could cripple a business. Federal, state, and
local statutes are increasingly complex, and employers find little sympathy from judges and juries.
The merits of the case don’t matter, and it doesn’t matter whether the employment practices liabilitycharge is arbitrated, settled or defended — all scenarios can easily result in five- or six-figure costs for your business. In addition, consider the time you’ll lose in defending yourself. The average EEOC complaint requires over a year to resolve.
Resolved through mediation
- Allegation: wrongful termination, race discrimination and defamation
- Settlement after mediation: $25,000
- Defense fees and costs: $34,234.31
- Final costs: $59,234.33
2. Allegation: age discrimination, intentional infliction ofemotional distress and disability discrimination
- Settlement after mediation: $63,300
- Arbitration costs: $2,562.50
- Defense fees and costs: $25,031.67
- Final costs: $90,894.17
Settled out of court
- Allegation: sex discrimination and violation of the Equal Pay Act
- Settlement: $75,000.
- Defense costs: $38,801.18
- Final costs: $113,801.18
Trial verdict — if you lose
- Allegation: wrongful termination
- Jury awards:
- more than $105,000 in past earnings,
- $100,000 in front pay, and another
- $250,000 for mental anguish
- Final costs: $455,000 — before legal fees!
Trial verdict — if you win
- Allegation: wrongful termination and sexual harassment
- Defense costs: $100,000 and five years building company’s defense
- Final costs: $100,000 — and defendant was found innocent!
Be prepared to defend your business. Farmers EPLI insurance can help. Call me now before the claim happens, because after it happens..... I can't help you.