LIDA Members need Employment Practices Liability Insurance
March 19, 2013 in General
Why restaurants need Employment Practices Liability Insurance coverage?
Employment practices liability insurance (EPLI) provides businesses coverage for claims made against them that can happen as a result of wrongful employment practices including: discrimination,
harassment, retaliation, termination, constructive discharge, failure to hire, supervise and promote, and personal injury resulting from infliction of emotional distress and humiliation, defamation and invasion of privacy.
Long Island Dining Alliance members can be at risk for EPLI claims, which could result in serious consequences and disruption of your business operations. We have just read about the substantial settlement against Sparks Steak House in New York City. This is a prime example of the risks restaurant owners face every day in their business operations.
Unfortunately, those who suffer the most are the very ones who can’t afford the devastating financial impact that can result from even a single Employment Practices lawsuit. The Equal Employment Opportunity Commission recorded nearly 100,000 charges in 2011, with the average cost of an EEOC lawsuit exceeding $250,000. Private businesses with 100 or less employees are most often sued for federal discrimination claims.
While Employment Practices Liability Insurance may seem like an unnecessary expense to the employer, it’s important to remember that these claims will take valuable time and money to defend. Employers can spend thousands of dollars on legal fees alone, defending the position that they had no negligence in the alleged incident. Even without solid evidence of negligence, some employers end up settling in
order to save their public image, avoid having to drag out negotiations, or having the suit brought to litigation. No company is immune and the concern is that the number of lawsuits filed by employees against their
employer is increasing.
Can you afford to pay $50,000-$100,000 merely to defend yourself against an allegation?
Protect your business – Sign up for the LIDA EPLI insurance coverage today! Remco Agency is contacting LIDA members to provide a quotation for this coverage which is available exclusively to members at competitive rates and appropriate limits of liability with no limit on defense expenses.