Lawsuits for employment practices have historically increased during periods of economic recession. These lawsuits are no longer just directed at larger corporations and statistics show in the past ten years that employee litigation against small businesses is growing as well. Projections from Progressive Insurance Company now show that businesses in may industries, including landscapers, are more likely to have an employment claim than a property or liability claim. Claims can be brought by employees, applicants, customers or clients alleging harassment, discrimination or other allegations against your business.

Employment claims are also notorious for incurring high legal expenses. Typical attorney fees for employment cases that even settled prior to trial are 100,000 dollars. According to the 2007 Employment Practice Liability Jury Award Trends and Statistics, the median jury award in employment cases was 200,000 dollars in 2007. These costs are also projected to increase.

Take into consideration the following typical defense costs when an employment related lawsuit is filed against your business:

• $12,000 - $18,000 for attorney fees to file an answer to a lawsuit and to begin the discovery of evidence.
• $20,000 - $30,000 for pretrial filings and preparation. These include additional motions and responses, excessive document analysis and review, written case evaluations or status reports, and settlement-related matters.
• $10,000 - $15,000 for mediation.
• $8,000 - $12,000 for attorney fees involved in a motion for summary judgment filed and the associated reply brief.
• $15,000 - $25,000 for attorney fees during an employment practices related trial. Plus, if you do not prevail in trial, you can incur significant costs of a verdict against you.

With Employment Practices Liability Insurance premiums as low as 500 dollars and still very low for companies with under 100 employees, the value for this type of insurance policy is very good for businesses of all sizes. At BearWise Landscapers, we recommend landscapers with employees to consider carrying this type of insurance coverage, and we highly recommend those with over 5 employees to request an insurance quote and review the advantages of this valuable coverage.

Employment Practices Liability Insurance (EPLI) provides protection for an employer against claims initiated by current employees, former employees and potential future employees. EPLI covers claims regarding discrimination, including age, sex, race, disability, etc. It also covers employers for wrongful termination of employment, sexual harassment, and any other employment-related contentions. EPLI not only covers your company but it also covers your Directors and Officers.

As everyone knows, lawsuits have been on the rise for the last several years and employment practices lawsuits are no exception. As you continue to grow your businesses, you need to analyze ways to protect what you have worked so hard to create. Too many people out there try to steal what others have devoted their lives to developing. Employment Practices Liability Insurance is also rather inexpensive and seriously needs to be considered by any companies with several employees. For example, if you have fewer than 50 employees your premium will be at most around $2,000 per year. To get a free online EPLI quote please click here.

It just takes one disgruntled employee or one employment mishap to make EPLI a very good investment.