Sheehan & Associates, P.L.C.

Michigan business litigation: Why should I consider EPLI?

Having insurance to protect one's business is of vital importance. No one knows if or when a fire, theft or a number of other disasters may strike. There is another insurance, though, that has become more popular in recent years among business owners, and that is employment practices liability insurance -- also known as EPLI for short. This type of insurance may prove incredibly valuable to company owners in Michigan who are facing business litigation.

Unfortunately, it is not uncommon for business owners to face lawsuits brought on by current or former employees. Discrimination, wrongful termination, retaliation claims, wage disputes and sexual harassment claims are some of the most common legal complaints made by employees or ex-employees. In 2013 alone, the EEOC reportedly received well over 100,000 complaints by disgruntled employees, and achieved approximately $370 million in restitution for these individuals. Both of those numbers slightly decreased in 2014, but employers still paid out around $300 million in employment litigation lawsuits.

So, what is EPLI and why might one want to obtain such a policy? The cost of litigation and payouts can have a drastic impact on the viability of a business. Employment practices liability insurance can help cover such costs which, in turn, may greatly reduce the impact such legal claims might have on a company's bottom line.

Doing everything possible to protect one's company is simply a part of good business planning. Along with having all appropriate insurances for one's firm, which may or may not include EPLI, having an experienced business litigation attorney may prove to be a valuable commodity if a legal claim is filed by an employee. Michigan business owners who are faced with such lawsuits do have options available to help resolve the issues and keep their businesses intact.

Source:, "The Evolution of Employment Practices Liability Insurance", Lisa Doherty, Aug. 6, 2015

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