One Of The Fastest Growing Liabilities For Small Businesses

One Of The Fastest Growing Liabilities For Small Businesses

In this economy, one of the most frequent liabilities that small businesses are running up against are employment related charges and lawsuits. In fact the EEOC recently announced that 93,277 workplace discrimination charges (wrongful termination, age, race and sexual discrimination, sexual harassment, retaliation, etc.) were filed in 2009. These alone resulted in $376 million in monetary awards obtained for plaintiffs via enforcement, mediation and litigation.

But these are targeted towards big businesses, right? 

Sorry to be the bearer bad news, but over 50% of these Employment Practices Liability charges are brought against smaller firms. Furthermore only 1.2% of small businesses have EPLI (Employment Practices Liability Insurance) protection. Here are some more facts on this disturbing trend:

* 81% of related charges are settled for an average of $22,400 to $40,500 even when the claim is found to be groundless! (I know it's nauseating, but legal fees are not getting any cheaper).

* Claims that go to trial cost over $180,000 on average.

* A recent survey conducted by the Hartford indicates that 2 out of 3 business owners are concerned that employees might bring employment-related charges against them.

So what's the good news? The good news is that there are several carriers who are offering great coverage that will not only pay damages, but will pay for legal fees to defend as well as providing front end legal advice that can be vital in heading off potential lawsuits. Minimum premiums start at $450 a year. Call Chris Baumli at Inspire Insurance Solutions at (512) 257-3773 to get a no-obligation quote.

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