Solving The $1,000,000 Employment Insurance Problem

For International Women's Day I sat down with Kit Chaskin and Lauren Golanty from Third to First for a conversation on the Inclusionism podcast about a novel insurance solution to an work place conflict problem that we have quietly lived with for decades: learn how we disincentivize workplace conflict. Large Employers Statistically Expect Workplace Claims EveryYear Many executives assume employment lawsuits are rare.Insurance data suggests otherwise. Understanding EPLI requires understanding the three partiesin liability insurance. First Party: the employer purchasing the policy Second Party: the insurance carrier Third Party: the employee claiming harm EPLI activates only when the third party sues the firstparty. The Workforce Risk Equation Expected Employment Claims ≈ Workforce Size × ClaimProbability If approximately 0.5–1% of employees file complaints annually: 1,000 employees → 5–10 complaints 5,000 employees → 25–50 complaints 10,000 employees → 50–100 complaints The Cost Curve Defense costs: $200K+ Average settlements: $75K–$125K Jury verdicts: $500K–$1M Large verdicts: $5M+ Prevention Model Early intervention: $10K–$50K Litigation: $300K–$1M+ Preventing just two claims per year could save a large employer $1–3 million. Employment claims are predictable operational risks—and prevention is far cheaper than litigation. Get solutions at InclusionScore.org