On average, a business in the U.S. has about a 12% chance of being involved in an employment lawsuit. The U.S. has very aggressive employment and discrimination laws that increase the chances of litigation for businesses operating in our state. In the Mid-West employers have a 40% chance of being sued by an employee according to the latest statistics by the EEOC.
Employment Liability Facts
Any worker who feels they have been discriminated against by their employer can go to the U.S. Equal Employment Opportunity Commission (EEOC) or the equivalent state fairness agency. The average days in litigation is 285 and 20% of these get settled prior to any court proceeding. The average cost per incident ( out of court) in 2015 was $125,00 according to the EEOC. The average court settlement runs about $225,000 with 20% or more averaging $500,000 or more.
The national average for total costs of claims that resulted in a defense and settlement payout is $125,000. Without Employment Practices Liability insurance, these companies would have had to pay an additional $90,000. Source PC360.com
Employers Are Regulated By Statute In Performing Certain Actions, Including:
Here Is Where California Ranks (chance of being sued)
Develop Strong Anti-Discrimination And Employment Policies
Employment Practices Liability Insurance
An Employment Practices Liability Insurance (EPLI) policy provides insurance against claims and lawsuits brought against an employer, its officers, directors, employees and managers. These policies generally cover allegations in the following areas: