Employment related cases are on the rise. An estimated 3 out of 5 companies can expect to face an employment related lawsuit, according to Insurepro.net.
Experts say that the risk of employment related lawsuits is higher during times of economic uncertainty and downturn.
“EPLI is an essential purchase to protect the assets of any company,” says Andy Kohler of Risk Transfer Inc., a company that provides insurance solutions to businesses. “The exposure of an employment-related lawsuit is only further exacerbated during economic downturns, when people are being laid off, asked to take pay decreases, are fearful of the future employment, asked to work more hours, and, as a result, are more likely to sue."
Even though EPLI is a valuable insurance policy for any company with employees, many companies are unaware of just how important this coverage is –until it is too late.
“Often, employers assume that workers compensation provides enough coverage,” says Texas Energy Insurance. “However, EPLI picks up where workers compensation leaves off. While workers compensation provides for an employee in case of an injury or accident, EPLI provides coverage for the company or employer, as a safeguard against employment related lawsuits.”
Employers, who are aware of EPLI, often assume that the importance of this insurance is based on company size. Kohler weighs in with statistics that prove that this is not always the case.
"Over 40% of EPLI claims are against firms with fewer than 100 employees,” Kohler says. “Workplace conduct that was considered acceptable-or was at least tolerated-just a few years ago can now land an employer in the defendant's chair.”
"No company is exempt when it comes to lawsuits from employees - no matter how excellent the relationship between employee and employer may be,” continues Texas Energy Insurance. “Lawsuits can be brought for any reason. With cases against employers on the rise, all companies, regardless of size are being encouraged to look into protection against such claims.”
Texas Energy Insurance is a Houston-based company that provides companies across the state of Texas with valuable insurance policies. For more information on EPLI visit their website at:www.texasenergyinsurance.com/