Tag Archives: employment practices liability insurance

Business Owners May Face Increase in Employment Lawsuits

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“As the economy continues to falter and a new Administration takes over in Washington, the workplace is being seeded with new legal hazards for business owners that could lead to an increase in employment charges and lawsuits.”
 
A more challenging environment for employers is anticipated with the high volume of layoffs, new worker-protection legislation and the probable elimination of damage caps in employment litigation.  Damages awarded to workers could rise to even higher levels and defending against an employment complaint may be more expensive . 
 
Already an urgent need for business and institutions of any size, Employment Practices Liability Insurance (EPLI) will now be even more crucial.
 
“The reality is that EPLI has evolved from a high-priced option to an affordable necessity.  EPLI coverage is now available in business owner policies or other commercial package policies.”
 
Source: Insurance Journal-National Region January 12, 2009

Jury Verdict Awards Continue To Increase

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Jury Verdict Research has just released its Jury Awards and Statistics. It’s not a pretty picture. The median award in 2007 came to $250,000, up from $192,000 in 2006, representing an all-time high. Nearly one in five verdicts (18%) came in between $100,000 and $250,000, 14% averaged between $250,000 and $500,000, while 22% came in at more than $1,000,000, the highest percentage ever! Discrimination awards (based on race, sex, and disability) jumped from a low in 2006 of $247,500 to $252,000 in 2007.

The probability of a plaintiff’s winning a verdict in 2007 came to 71%, up from 56% in 2006. The probability of a plaintiff verdict was even higher in state cases at 66%, up from 55%. One bright lining: the median settlement for 2007 was $77,875, a reduction from $85,000 in 2006. The report contains many more statistics, as well as noteworthy employment practices awards.

Now is the time for employers to take action to protect themselves with EPLI insurance.

Mark Kinsey, Package Insurance Associates, Inc.