Employment Practices Liability
Did you know that the average Employment Practices lawsuit costs $59,000!
In today's business climate, firms of all sizes are at a higher risk of facing an Employment Practices suit. So much so, that three in five firms will have an Employment Practices lawsuit this year alone!!
Claims can arise out of a variety of exposures: discrimination, harassment, demotion, defamation, loss of reputation, unfair dismissal, failure to hire or promote and infliction of emotional distress at work. In the past 10 years there have been over 300 cases, the average settlement is over $50,000 and in some cases senior management faced personal liability even when their company was insolvent. No-one wants to lose their personal assets.
Thus, the question for any firm is no longer whether it will be faced with employment practice liability (EPL) claim, but rather, when it will occur, how much it will cost and what damage it might cause to its reputation and brand image. Standard policies, procedures and supervisory training are no longer enough to protect companies from the high costs of employment litigation.
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Here are a couple of examples: |
- A CFO was terminated for cause following an internal investigation regarding accounting irregularities. Pursuant to the provision of his employment contract, he sought arbitration and claimed damages for wrongful termination. The matter was settled following mediation with the EPL Policy funding 90% of the six figure settlement representing the covered loss.
- The President of a private Canadian company, whose annual salary was over $200,000.00, was told that following a restructuring, her position would be eliminated but she would be in charge of the company’s operating divisions. At the time, she was pregnant and took the position that she had been constructively terminated and discriminated against on the basis of gender. She filed a human rights complaint and also sought damages for wrongful termination. The EPL policy responded by paying the defense costs for the human rights complaint and the six figure settlement which included $10,000.00 for damages for mental distress.
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As standard Commercial General Liability policies do not cover Employers for this type of claim and any company that has employees is at risk; one way to protect your firm is to purchase Employment Practices Liability Insurance.
Our program is underwritten through Chubb Insurance of Canada who is rated as an A++ Insurance Company and offers some of the broadest coverage available.
There are many Insurance options available for firms of all sizes. Here are some estimated pricing and limit options:
*based on companies free of Employment Practices claims.
| Employee Count |
$500,000 Limit
Annual Premium
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$1,000,000 Limit
Annual Premium
|
0-9 (up to 5 employees
$500 Premium) |
$750.00 |
$1000.00 |
| 10-25 |
$885.00 |
$1,180.00 |
| 26-50 |
$938.00 |
$1,250.00 |
| 50-100 |
$1,125.00 |
$1,500.00 |
| 101-150 |
$1,350.00 |
$1,800.00 |
| 151-250 |
$1,613.00 |
$2,150.00 |
 Coverage Feature Sheet
Employment Practices Liability Application
We would be happy to assist you with further information, please feel free to contact us.
Kind regards,
Diana Bereas, CAIB, CRM
Small & Medium Enterprise Supervisor
Martin Merry & Reid Limited
3 Church Street, Suite 404
Toronto, ON M5E 1M2
Ph: 416.366.3333 ext.231
Fax: 416-366-0730
dbereas@mmr.ca
Margaret Chetram, B.A.(Hons); FCIP; CRM; CCIB
Commercial Lines Manager
Martin Merry & Reid Limited
3 Church Street, Suite 404
Toronto, ON M5E 1M2
Ph: 416.366.3333 ext.267
Fax: 416-366-0730
mchetram@mmr.ca
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