Attorneys sitting in an office.

EPLI Insurance Overview

Did you know that studies show that 1 out every 10 law firms will face some employee-related litigation?  Because of this, we recommend that all firms purchase Employment Practice Liability Insurance (EPLI).  EPLI Insurance protects your firm from the following types of claims scenarios:

  • Sexual Harassment
  • Wrongful Termination
  • Age Discrimination
  • Racial Discrimination
  • Religious Discrimination
  • Disability Discrimination
  • Sexual Discrimination
  • Hostile Working Environment
  • Breach of Contract/Misrepresentation
  • Harassment & Emotional Distress

More important than the coverage provided for the scenarios above is that your EPLI policy will also pay for the defense costs associated with defending you in the claim.  In fact, the defense costs can easily cost as much, if not more, than the claim payment itself.

Claims Scenarios

Here are a few claims scenarios that have happened to law firms where EPLI Insurance was involved:

Sexual Harassment: Repeated comments made by an office manager resulted in a $350,000 payout to three former employees alleging sexual harassment.

Wrongful Termination:  A human resources director was advised to terminate an investigation of allegations of sexual harassment by a partner.  She was subsequently terminated from her position and was paid $300,000 in her wrongful termination suit.

Age Discrimination: A 62-year-old teacher successfully sued her employer for age discrimination because the law firm failed to document the employee’s poor performance properly. The representative won over $100,000 in the suit.

Disability Discrimination: When a law firm told a disabled job applicant that they had no openings for persons in wheelchairs, they found themselves with a $3.5M jury verdict.

If you would like to learn more about obtaining an EPLI policy for your firm, please feel free to give our office a call.