Your company, like others, is becoming increasingly exposed to liability arising out of employment practices.  Claims for discrimination, wrongful termination and sexual harassment have increased dramatically over the past several years.
 
By way of illustration:  Three out of every five employers are sued by a disgruntled employee alleging wrongful employment practices?  What is even more alarming, 550 new employment practices claims are filed against employers every working day!
 
The cost of defending these claims is exceptionally high.  Over fifty percent of all claims cost in excess of $50,000 to defend!
 
We are experienced in employment practices liability and can offer to help you through our special program to protect you against the prohibitive cost of one of these suits.  Attached for you review is our "Ten Reasons Why Employers Need Employment Practices Liability Insurance".
 
You can never tell when you will be sued by an employee alleging one or more of the employment practices claims causes.  It is important that you take steps to protect yourself against such a suit.  Your existing General Liability or Worker's Compensation policy does not provide you coverage against this ever increasing exposure.
 
We will contact you in the next few days to discuss some ideas that may be useful in planning your employment risk management strategy.

TEN REASONS WHY EMPLOYERS NEED EMPLOYMENT PRACTICES
LIABILITY INSURANCE

 1. Coverage is not provided under General Liability or Worker's Compensation Insurance.
 
Recent cases have clearly defined the coverage is excluded under Liability and Worker's     Compensation policies. Without this coverage the employer is left on his/her own to cover   any costs.
 
 2.There are four basic categories of Employment Practices Claims
            a.  Discrimination
            b.  Wrongful Termination
            c.  Sexual Harassment
            d.  Workplace Torts

The fastest growing of the four listed claims is "Sexual Harassment".  However "Workplace Torts", such as Invasion of Privacy, etc are also increasing rapidly.
 
 3. The number and size of Employment Practices claims is now a meteoric rise.
 
Currently there are 386,000 claims on file with the Department of Labor.  In 2006, over 1650,000 new Employment Practices claims were filed with the EEOC.
 
 4. Many of the employment laws contain ambiguous wording.
 
The ambiguity of the wording in many of the laws requires courts to interpret the meaning.     This increases the cost and emotional distress of the defendant employer.
 
 5. EPL Insurance protects the Company and Individuals
 
This coverage protects not only the employer, but its officers. directors managers and super visors.
 
 6. Provides help in claims investigation.
 
The policy provides immediate investigation and consultation on the best course of action.
 
 7. Covers the cost of defense.
          
Presently the current defense costs through one week of trial will run approximately $200,000.
 
 8. Minimizes emotional impact that distracts from running business.
 
This provides help when the outcome of every decision must be paid by the employer
 
 9. Covers the cost of any damages awarded.
 
In 2006 the average jury verdict was $718,235.
 
10. Protects the Bottom Line.