The EOC looks at nearly 90,000 Employment Practices Liability Insurance (EPLI) claims every year, and the average cost of each case is $450,000.
But even happy families disagree and face irreconcilable differences. It happens all the time. Sometimes they can work through it, and sometimes they can’t. The same is true for employees.
The Equal Opportunity Commission (EOC) reports that employment issues make up 30% of all civil litigations in the U.S., which makes the likelihood of an employment claim against an employer higher than a property or general liability claim. And employment practices liability risks can begin the moment you interview someone.
Employment litigation claims can have a severe financial impact on a restaurant, even forcing them out of business if they do not have adequate insurance. According to the Society for Human Resource Management, 67% of all employment cases that go to litigation result in a judgment for the plaintiff.
Larger companies tend to protect themselves against employment claims with employee policies and procedures and EPLI, but many small restaurant owners do not, and 41% of all EPLI claims are made against employers with only 15 to 100 employees.
Common issues for which a good EPLI policy can help protect your restaurant include:
The cost of EPLI coverage is determined by factors such as the number of employees you have, the percentage of employee turnover, and if you have established practices and procedures in place. EPLI may be offered as an endorsement to your Business Owner’s Policy, General Liability Policy, or as a stand-alone policy. It usually covers the cost of defending your restaurant against the charges and any damages you are ordered to pay.
For a FREE REVIEW of your liability insurance, contact American Insuring Group online or call us (800) 947-1270 or (610) 775-3848.