In todayâ€™s society many people sue first and ask questions later. Unfortunately, as an employer, there is a good chance that eventually one of your employees will sue your business.
Employee lawsuits can be much more than just an inconvenience. They are expensive, distractive for your management team, and can quickly erode productivity and employee morale. According to our partners at Trusted Choice, employee lawsuits are becoming much more common, making employment practices liability insurance (EPLI) a necessity for businesses large and small.
Over the last 20 years, employee lawsuits have risen roughly 400%, with wrongful termination suits jumping up more than 260%. Oddly enough, you are more likely to be sued by an employee these days than to have a fire at your facility.
Itâ€™s not just large corporations that are being hit. Roughly 41.5% of employee lawsuits are brought against private companies with less than 100 employees. The financial damage of employee lawsuits can be dramatic; the cost of settling out of court averages $75,000, and the average jury award hits $217,000 if you go to court and lose.
Itâ€™s not just wrongful termination that can end in a lawsuit, you can be sued for many reasons. Despite all of these scary numbers, roughly 7 out of 10 businesses donâ€™t carry EPLI insurance. This can be an expensive mistake.
Steps to Take to Protect Your Business >