The SCI Companies, Lexington Assist Companies Handle Increased Risk of Employment Claims

December 28, 2005

The SCI Companies, a Professional Employer Organization (PEO), has renewed its coverage with Lexington Insurance Company, a subsidiary of American International Group Inc. (AIG), to provide Employers’ Practices Liability Insurance (EPLI) to its current and future clients.

Employers face a growing number of serious employment-related risks in their day-to-day interactions with employees. EPLI protects businesses against legal defense expenses and damages resulting from wrongful employment practices including discrimination, sexual harassment, wrongful termination, and other related workplace issues.

“Every year our clients are faced with more and more difficult regulations and laws. Therefore, the client’s day-to-day decisions are tougher. Our continued EPLI coverage as well as our unique service delivery model will help manage the exposure our client companies have regarding claims associated with wrongful termination, sexual harassment, and other discriminatory issues as a result of these tough decisions,” said JC Dominguez, president, SCI.

The number of employment-related lawsuits is reportedly at an all-time nationwide high and steadily increasing. In 2004 alone, the Equal Employment Opportunity Commission handled more than 80,000 charges.

Litigation damage awards continue to increase exponentially. The average damage award in an employment lawsuit is reportedly $1 million.


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