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AIG Launches EPL Defense Insurance

The policy covers costs of employment practices liability-related lawsuits for small businesses.

 

AIG Small Business, a division of the property-casualty insurance companies of American International Group (NYSE:AIG), has unveiled a new insurance product designed to cover the defense costs of employment practices liability (EPL)-related lawsuits brought against companies with up to 25 employees.

EPL Defense Shield provides legal expense coverage for employee claims such as wrongful dismissal, termination, retaliation, sexual harassment, libel, slander, humiliation, defamation, and wrongful failure to employ or promote. The policy covers the company and the individuals typically named in these suits, including directors and co-workers.

"EPL Defense Shield is designed to help protect small businesses from litigation risk," Vincent C. Tizzio, president of AIG Small Business, said in a statement. "A 2006 report by the U.S. Equal Employment Opportunity Commission reported that 60 percent of all charges filed were found to have 'no reasonable cause.' It's important to note that the cost to defend groundless claims can be devastating -- even when the company wins."