Employment Practices Liability Insurance, generally known as EPLI, has become a coverage staple in the commercial world. There’s widespread reason for it, as the following scenario experienced by a PRIME Insurance client demonstrates.
Another PRIME Insurance Success Story!
A business owner in NY fired an employee for what he felt were valid reasons. The dismissed employee disagreed with the cited grounds in letting her go. She sued her boss for wrongful termination.
Typically, a lawsuit involving allegations about a business owner by a former employee are difficult to prove either way. In most cases, such as this one, the defense team puts the possibility of a trial as its final option to avoid the associated expenses that easily could drum up thousands of dollars in court fees per day for the defendant.
Fortunately, this business owner had acquired a proper EPLI policy from Prime Insurance to cover the possibility of such an event. His insurance company hired a defense team that ultimately ended the suit with a settlement involving a $50,000 payout to the former employee. With defense costs in relation to the conclusion totaling an additional $23,000, this became a $73,000 claim that was covered under the insured’s policy.
In this instance, the importance of a quality EPLI policy became underscored – and without the closing bang of the judge’s gavel.
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Summary: See how a quality EPLI policy from Prime Insurance enabled a commercial insurance client to move forward without the crippling effects of an employee-related lawsuit.