I recently had a client (multiple unit restaurant operator) call to inform me that he is being sued for discrimination. He asked me if his insurance would cover this and sadly, I had to remind him that he opted against purchasing Employment Practices Liability Coverage.

In this case, we discussed the pros/cons of purchasing EPLI and he made the decision to save the money and roll the dice. As his risk management consultant, it was my job to educate him on the exposures he faced, but at the end of the day, it was his decision to make.  I have said this time and time again, the principal of insurance is to pay a small amount upfront to avoid having to pay a huge amount down the road. It’s that simple.

Here, I expect the merits of the case are questionable and he will eventually prove his innocence. However, what he (and many others like him) fail to consider when making their decision are the intangibles.

Ask yourself:

How much will it cost to hire an attorney to defend you and your business?

How much time will this cost you?

Think this will bring any emotional stress?

Could this added stress trickle down to your employees?

The point is…

…when making the decision whether to purchase EPLI or not, keep in mind there is more to it than just $$$$!