Employment Practices Risk Management Association

CMA members become EPRMA members

In March of 2006, negotiations between the board of CMA and EPRMA were finalized and members of the California Medical Association now enjoy as an additional benefit, membership in EPRMA at a reduced cost. Benefits of membership include ComplyAmerica training, the Helpline and by virtue of the EPRMA risk purchasing Group the ability to purchase EPLI coverage at favorable terms and rates.

We welcome CMA members.

Statistics show that businesses are more likely to face an employment claim than a property or general liability claim. Once these claims manifest, they become an extensive drain on a business’s assets. Out-of-court settlements in employment cases average $40,000. The median compensatory award is $218,000, with 10% of wrongful termination claims resulting in awards in excess of $1,000,000. The average cost of defense is in excess of $45,000. Adverse publicity, which sometimes accompanies these proceedings, may add to an employer’s woes.

The prospect is even more daunting in California, where widely publicized multi-million dollar verdicts are common, and an organized plaintiff’s employment law bar has established a sturdy grip on “corporate California.” While many small businesses may think they are immune from this adversity, the reality is they are not. Six out of ten employers have faced employment lawsuits within the past five years, and smaller businesses can least afford the financial burden of litigation.

In this treacherous business climate, Employment Practices Liability Insurance (EPLI) is a must. EPLI provides coverage, including cost of defense, for discrimination and harassment actions, and other state and federal employment-related claims. While many employers believe their general liability or workers’ compensation policies protect them, the truth is, these other policies do not.

The combination of California including Los Angeles county and the exposures associated with Medical offices contribute to the Insurance industry treating this class of business as a "Special Risk." Coverage, if offered at all, is often rated very highly with prohibitive minimum premiums and attachment points. Because of the emprirical data collected by EPRMA and ComplyAmerica the CMA is able to offer its members a competitive product coupled with superior risk managements. Please click here for a PDF version of an article published in the CMA Journal.