Posted by: jmwilsonmga | October 8, 2013

7 Startling Statistics Every Employer Should Be Aware Of

In my previous blog post, I provided statistics from the EEOC (Equal Employment Opportunity Commission) regarding the total charges brought against employers in the United States for the year 2012. The reasons for charges were largely discrimination based such as race, national origin, age, sex. However, suits relating to wrongful termination and sexual harassment are also very common.

If your client doesn’t think they are at risk for being named in a lawsuit, share some of these statistics with them to help them understand their need for Employment Practices Liability Insurance (EPL):

  1. The most common targets for claims today are small businesses –  50%  are employers with between 15 and 100 employees. Employers with more than 500 employees make up 25% and those with 100-500 make up 20% of the claims.
  2. 56% of all cases tried result in verdicts for the employee (plaintiff).
  3. The average case takes two years to go to trial and may end up on appeal even longer.
  4. The largest number of lawsuits are filed in Texas, California, Florida and Illinois.
  5. Employment related lawsuits now comprise 1 out of every 12 federal court cases.
  6. Juries awarded over $1 million in 12% of the cases (some sources state the number being closer to 20%).
  7. Lastly, if those stats don’t help make the case for the need of Employment Practices coverage, this might;  Approximately 75% of employment related claims are found to be groundless, but only after the employer spends significant defense dollars to prove it.

Employment Practices

To reiterate from my earlier contribution to this topic, employee disputes are more commonplace today and EPL policies have come down in pricing. It is a perfect opportunity for independent insurance agents to offer and sell this coverage to their clients.

  • Employers – do you have this coverage? If you don’t know, ask your insurance agent!
  • Independent Insurance Agents – are you offering this coverage to your commercial clients with employees?

Statistics provided by Angelyn Heavener, CIC, CPIA Insurance Training Plus through the National Alliance for Insurance Education and Research.

Cathy-Baldwin-Sept-2013About the Author : Cathy Baldwin, Marketing Manager

Cathy has been a member of the J.M. Wilson Team since 1990 and currently serves as the Marketing Manager.  She oversees the marketing team, which provides marketing support for our underwriting teams in commercial transportation, property/casualty, professional liability, personal lines, and surety.  Cathy loves the variety in her position as marketing manager.  She has the opportunity to work with everyone at J.M. Wilson, our agents, and the companies we represent.  In her free time, Cathy loves to work out at CrossFit – AZO.  She also enjoys reading and listening to music – her favorites range from Neil Diamond to Led Zeppelin.

Connect with Cathy on LinkedIn

Disclaimer :  This article is for informational purposes only.  There is no legal advice being suggested or proffered.  The author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.  This article is the opinion of the author and is not supported or endorsed by J.M. Wilson.  It should not be relied upon and may contain inaccuracies or content may have changed over time, contact your underwriter for the most current and accurate information.  Any comments or responses are the opinions of their authors.  Content on this site is believed to be covered under Fair Use.

Copyright 2013 J.M. Wilson Corporation

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