Pennsylvania Bar Institute, Claims Made and Professional Liability Insurance Coverage

Authors: Courtney C. T. Horrigan

Employment Practices Liability (“EPL”) Insurance provides financial protection to companies looking to protect their balance sheets against the costs of employment-related claims. In recent years, a combination of factors, fueled by the recession, caused the volume of employment-related lawsuits to reach record highs. Even as the nation slowly recovers from the recession, employers continue to face the ever-present threat of expensive litigation and proceedings before the U.S. Equal Employment Opportunity Commission (“EEOC”) and state Fair Employment Practices Agencies. Indeed, the risk of a sizeable jury award remains a constant and the EEOC reported record-high recoveries of $372.1 million in fiscal year 2013. To bring the threat into further perspective, the total amount of the top ten largest settlements of private employment discrimination class action lawsuits in 2013 reached a combined total of $234.1 million.

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