Employer Practice Liability Insurance for the Security Industry

Employer Practice Liability Insurance for the Security Industry
June 12, 2012 cmount

Data Shows Large Increase in Employment Practices Liability Claims.

The U.S. Equal Employment Opportunity Commission (EEOC) reported that for the fiscal year of 2010, it received nearly 100,000 new charges of employment discrimination. This marks the most ever claims filed in the agency’s 45 year history and a 7.2% increase from 2009.

What is Employment Practices Liability Insurance (EPLI)?

Employment Practices Liability Insurance (EPLI) provides businesses coverage against claims made by workers who allege their rights as employees have been violated.  EPLI claims can include claims of Sexual Harassment, Race/Sex/Age/Religious Discrimination, Wrongful Termination, Wrongful Infliction of Emotional Distress, Negligent of Evaluation, Deprivation of Career Opportunity, Wrongful Discipline, Americans with Disabilities Act Violations, Etc. The EPLI policy will reimburse your company for the costs to defend a lawsuit in court and judgments and settlements. EPLI claims are excluded on the standard Comprehensive General Liability Insurance Policy.

Average Cost and Trends of EPLI Claims.

  • The average verdict in EPLI cases now exceeds $270,000
  • Average cost to defend against an EPLI claim is over $45,000
  • According to the Department of Labor, employees and other plaintiffs won 67% of all litigated cases.
  • The average amount paid for out of court settlement is over $51,000
  • 46% of all EPLI claims are brought against small employers with 10 to 150 employees.
  • In 2010, there were 29,029 charges of sex-based discrimination claims brought against employers.

Protecting Your Security Guard Company against EPLI

EPLI claims (Sexual Harassment, Discrimination, and Wrongful Termination) against private security guard companies are a growing problem for the security guard industry. The only insurance solution to this growing problem is Employers Practice Liability Insurance (EPLI).

I can obtain a premium indication for you with minimal information. I have attached a 1 page supplemental application for you to complete and return. Once I have this completed page I can obtain a quote for you.

Craig Mount


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