Small Business & Rising Employee Lawsuits

The small business insurer, Counterpart says a lot of small business owners are growing increasingly concerned about being sued by employees. In 2023, almost 40% of small business owners got hit with an employee lawsuit. And 23% of that group said the litigation cost them around $250,000.

In 2024, a frightening 59% of small business owners worry about an employee lawsuit.

"As the compliance landscape continues to become more complex, the specter of litigation looms large for many small business owners," the Counterpart survey found. ”Given the widespread awareness of risk held by the majority of small business owners, many choose to protect their businesses with management liability insurance policies.”

Even though they fear employee lawsuits, 99% of those surveyed say they understand the risks associated with managing employees. When it comes to insurance, 71% believe they are adequately insured for those kinds of suits.

Of the CEOs and business owners, 61% say they have Employment Practices Liability Insurance (EPLI). It is the most commonly held policy by the small business owners surveyed.

Another 53% said they have purchased Directors and Officers (D&O) Liability Insurance. Only 5% say they have no insurance at all.

Here’s more from the survey:

• 54% of the small businesses surveyed are doing a hybrid work model
• 75% think the remote work is improving the business performance
• However, 23% say managing remote workforces was one of their most difficult challenges last year
• 42% require everyone to be at the office five days a week
• 33% of those surveyed plan on having all employees in the office five days a week by the end of this year

Source link: PropertyCasualty360.com — https://bit.ly/3XW2jZh