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EPLI: important coverage for businesses, says Amity Insurance

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QUINCY, MA ISSUED APRIL 29, 2011….With discrimination lawsuits against businesses on the rise, employment practices liability insurance (EPLI) can be vital as part of a business insurance product line, according to Amity Insurance Agency, Inc., the region's leading full service agency.

While there are no official figures as to the total cost of discrimination lawsuits on businesses, the number has been estimated at roughly two billion dollars a year. Yet many business owners continue to resist protecting themselves against this incredible liability, believing they are immune from lawsuits, that they could absorb the cost of litigation or that their current coverage provides adequate protection against this form of lawsuit.

But no matter what type of company or its structure – even if it is set up as a corporation – legal protection can be stripped away by a judge. And many smaller businesses don't have the necessary human resources practices and policies in place to prevent a discrimination lawsuit; making them more vulnerable to potential litigation.

No doubt about it; lawsuits are costly, both financially and in the toll taken on the productivity of employees. In legal situations, management and other members of a business are asked to testify, gather evidence, and perform additional actions per court order – the more time spent on these non-core business activities, the less time is focused on the bottom line. A business can go bankrupt as the result of a lawsuit.

Many business owners fail to recognize the full extent of their current coverage. Falsely, they may think that general business insurance protects them from discrimination lawsuits, when it does not. In fact, business owner policies, workers' compensation, and general and professional liability policies sometimes specifically exclude liability from discrimination suits.

EPLI remains the only way to protect against the costs of lawsuits based on discrimination; it provides coverage from liabilities including sexual harassment, general discrimination, wrongful termination, breach of employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress, and management of employee benefit plans.

In short, EPLI provides comprehensive protection from every possible type of discrimination related liability, making it a valuable coverage component for all businesses.

About Amity Insurance

Amity Insurance Agency, Inc. is a full-service agency dedicated to meeting business, professional and personal insurance needs. The agency specializes in legal malpractice insurance, commercial and habitational real estate insurance, hospitality industry insurance and charter school insurance. The firm, since 1996, has been the recipient of the “Best Products and Service” Award from The Massachusetts Lawyer’s Weekly. In addition to commercial real estate, charter school and hospitality divisions that supplement general business and personal lines units, Amity Insurance Agency carries a complete line of professional liability coverage. The agency is endorsed by the Massachusetts Academy of Trial Attorneys for all insurance products as well as the Women’s Bar Association for professional liability insurance. Amity Insurance is licensed in most states. The agency has offices at 500 Victory Road, North Quincy 02171. For information on products or services, please visit or call (800) 940-4010 to schedule a free analysis of insurance needs.



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