Employers’ Liability Insurance Drives Business to Big Law Firms

A form of liability insurance often touted as a potential lifesaver for small businesses could be driving business away from small law firms and toward their larger competitors.

Employment practices liability insurance (EPLI) generally covers employers for harassment or discrimination claims from employees who belong to a protected class based on their race, sex, disability, ethnicity, national origin, or age. It also generally extends to whistleblower claims and claims based on the Family and Medical Leave Act.

Smaller businesses, which often lack sophisticated in-house legal or human resources departments, may be most vulnerable to employment claims.

“It helps especially small ...