Reasons for Coverage

Claims for sexual harassment, wrongful termination and discrimination (age, sex, race, pay, etc.) continue to be on the rise which means you face the chance of your business being the target of legal action. Almost 75% of all litigation against corporations today involves employment disputes. Every year between 77,000 and 81,000 charges are filed against employers under statutes enforced by the Equal Employment Opportunity Commission, and the majority of those claims are brought against companies with fewer than 100 employees.**

*"PLUS" seminar, 6/16/2005     

**Statistics provided by the U.S. Employment Opportunity Commission (www.eeoc.gov)                             

Business liability policies generally have a standard exclusion (CG 21 47) for employment practices liability exposures. Some business package policies offer limited coverage and reduced limits which may be inadequate to meet the needs of your particular business.

Based on our estimates, the average cost of a claim against a smaller company is around $50,000 when payment is made to the plaintiff. Keep in mind that even frivolous claims cost you time and money to defend yourself. EPL insurance covers companies and individuals for loss (damages and defense costs) arising out of employment practice disputes. Common claims allege discrimination, sexual harassment, wrongful termination and wrongful discipline.

CNA policyholders can receive the benefit of professional risk management consultation.This benefit is provided through a national firm focused on preventing loss and litigation from workplace risk. Businesses that purchase Employment Practices Liability insurance through CNA are eligible for consulting advice and online training at no additional cost.

When a claim is brought against you, CNA will match you with a defense attorney experienced in handling employment practices liability claims. We also have dedicated claims specialists who work hand in hand with underwriters to manage each loss and provide quality claims service. The defense of a suit can be expensive in time, money and resources. By obtaining EPL coverage through CNA, you can have the coverage that your business needs in the event of a lawsuit.