Hotel/Motel - Insurance Specialist

 

 

 

 

Employment Practices Liability Insurance (EPLI)

Can the small motel owner afford employment practices liability insurance?  Every employer, large or small, face the reality that it will be the "Target of legal action" from past, present, and prospective employees.  Just look at these newspaper headlines:

The Chicago Tribune: - Jury awards average $200,000 for age discrimination claim! The Questioner: - Former controller accepts $9.5M settlement in $124 Million wrongful       termination verdict! The Inquirer: - Sexual harassment claims doubled from 1991 to 1998! The Examiner: - Jury awards $7.1 Million to secretary in sex case!

Now consider the following facts:

  From October 1, 1993 through September 30, 1994, the Equal employment Opportunity     Commission (EEOC) received 156,156 discrimination complaints.  From 1991 to 1993, the number of sexual harassment charges filed with the Equal Employment opportunity Commission increased from 3,300 to 7,200.

  Statistics show that almost 31% of all female workers claimed to have been sexually harassed at work.

Not only are the numbers of employment-related claims increasing, but so is the potential financial risk to your business.  defending a wrongful termination or discrimination claim -- whether you are innocent or guilty, or even if the claim is groundless or fraudulent -- can be expensive.  The potential exposure for a money damages award threatens your company's limited financial resources.

Employment Practices Liability Insurance

There are charges more frequently leveled against employers of all kinds and sizes in today's business environment. Though groundless, the costs of defending such claims regularly exceed $35,000! According to Jury Verdict Research, the compensatory median award for EPL judgments in the year 2000 by category were as follows: Discrimination $150,000

Constructive Discharge $112,500
Hostile Work Environment $155,000
Retaliation $139,000
Sexual Harassment $100,000
Wrongful Termination $157,386
All Plaintiffs Verdicts $218,000

The probability of plaintiff recovery for Employment Practice Liability overall was 67%, while the probability of plaintiff recovery for various types of discrimination was as follows:Age 78%

Disability 59%
Race 49%
Pregnancy 71%
Sex Discrimination 69%
All Discrimination 65%
Overall Federal District Courts 75%
Overall State Courts 60%

Asian American Nations Insurance Group offers insurance to protect private businesses from claims of this nature. Called Employment Practices Liability Insurance (EPLI) by the trade, coverage can be purchased in amounts as small as $250,000 or as high as $1,000,000 in one single policy. Minimum premiums for limits of $1,000,000 run as little as $1,605. AANIG markets this coverage through a variety of "A" rated carriers.AANIG offers stand alone EPLI forms which contain the broadest coverage language available including so called "all risk" language. At least one of these policy forms include coverage for violations of the Fair Labor Standards Act (FLSA), protecting a business when claims for failure to pay overtime are made. If you would like to obtain a premium indication for Employment Practices Liability Insurance give us a call today!

Get a quotation today!

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For More Information Contact:

Asian American Nations Insurance Group, Inc.
735 Primera Blvd. #215, Lake Mary, Florida 32746
Tel: 1-877-740-7829
FAX: 1-407-829-8576

Internet: info@aanig.com

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Asian American Nations Insurance Group, Inc.
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