Do you have employees? If so, then Employment Practices Liability is highly recommended. This coverage will pay for claims arising out of any of the following: Refusal to employ; Termination of employment; Coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination and other employment related practices.

 WHAT ARE THE TYPICAL COSTS TO DEFEND AN EMPLOYMENT PRACTICES LAWSUIT? 

So, you won the case, you’ve been exonerated, but what did this case cost you to prove you did not act wrongly in your employment decision? 

Consider the following typical costs associated with a “no judgment” claim.

ADMINISTRATIVE CHARGE:

  • Defense of an EEOC or Administrative charge:  $4,000 – $7,000;

LAWSUIT FILED AGAINST YOUR BUSINESS:

  • Answer the complaint and begin discovery:  $12,000 – $18,000
  • Pretrial filings, preparation, including  motions, responses, document analysis and review, case evaluation, settlement and other related matters:  $20,000 – $30,000
  • Mediation:  $8,000 – $12,000
  • Trial:  $15,000 – $25,000

Total costs range between $69,000 – $107,000  and guess what?  You are the WINNER!  Only imaging the costs should you come out on the short end.