EPL Insurance

franfields

Our renewal for Employment Practice Liability Insurance is very expensive. Any one have experience with the coverage?

Margaret Morford

I did. Two things you want to be sure are written into your policy.
First, that the labor attorney that normally represents you is acceptable to the insurance carrier. This way you get to use your lawyer, who has done business with you and has your best interests at heart - not the insurance company's lawyer who understands where his/her money comes from. Second, you want a provision that says the insurance company cannot settle a case without your consent. Most policies are written just the opposite way. You will be looking at this from a long term view. If you pay a small amount on this case, you know that once the employees know, there will be ten more behind that! The insurance company is only looking at what they have to pay on this case because it will have cancelled your insurance by about the third case and you'll be on the hook for the rest. (I think I might have had a Don D curmudgeon moment there!) I'd be glad to answer any further questions you might have if you want to call me. My number is below.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Parabeagle

We are just getting ready to renew ours and our premium is increasing -- unfortunately due a bit of unpleasantness in the past year. I agree with most of what Margaret says, but not all. If we had spent just a small amount to settle a groundless claim a year and a half ago, we wouldn't have incurred $30K in legal fees only to settle later, rather than trusting our luck to an Alabama jury. Sometimes I think it does pay to assess the risk and cut your losses as quickly as possible rather than defend against a meritless claim, even though it goes against my nature to do so.

Sunny

Parabeagle: How did you get in front of an Alabama jury and where? (If you don't mind sharing.) We have a wrongful termination case pending - my first one in Alabama - and I would be very interested in your experience. Even though I think these were righteous terminations (fighting), I am afraid of jury sentiment and the ever-popular legal shenanigans.

Thanks,
Sunny

Parabeagle

We were in US District Court for the Northern District. Our experience was not very positive. Although our lawyers were quite good (the partner was a native Alabamian), the picture that was painted of Big Bad Yankee Company, Inc. vs. the Sweet Poor Shoeless Plaintiff by her lawyer was perceived to be an obstacle we would have a tough time overcoming in front of a Southern jury. (interesting side note: Just read an ABA survey which said that 77% of jurors would decide however they wanted to in deliberation, regardless of the judge's instructions) So we cut our losses.

Sunny

Thanks - that's pretty much how I think things usually go here.