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Workplace Risk Cost Calculator

See what one workplace claim could cost your business.

Model the potential cost of a serious workplace complaint, investigation, or employment charge in about 30 seconds. Change any assumption and see the result immediately.

No email required · Editable assumptions · Directional estimate, not legal advice

Run your numbers

Start with one serious workplace matter. Add more if you want to model your organization's actual experience.

How many serious workplace matters should we model?

Think formal complaints, investigations, agency charges, or matters that required legal or outside HR support.

What could one matter cost if it escalates?

The $160,000 default is the average total of defense and settlement costs Hiscox reported across 1,214 closed employment claims at employers with fewer than 500 people.

Results update immediately. No email required.

Potential total cost
$162,496

Based on 1 serious workplace matter at $160,000 per matter, plus approximately 32 hours of internal response time.

Direct cost exposure
$160,000
Internal time cost
$2,496
Internal time required
32 hours

Direct cost is the potential legal, investigation, defense, settlement, or outside-support cost based on the assumption selected.

Internal time cost is the estimated cost of 32 internal hours spent receiving, investigating, documenting, and resolving the matters, which is time HR and management could spend operating the business instead.

This is a directional planning estimate, not a prediction, legal opinion, insurance analysis, or guarantee of future costs. Actual costs depend on the facts and response to each matter.

Now compare that exposure with the cost of building the right system.

Texas Employers With 1 to 14 Employees

A complete prevention and response program for $129 per month.

The Texas Small Employer Program includes role-specific training, an independent employee hotline, manager guidance, quarterly employee check-ins, Texas-specific policies and documentation, and investigation support when needed.

$129/month
Employers With 15 or More Employees

Get exact pricing for your workforce.

Pricing depends on total headcount, employee locations, applicable state requirements, and program scope. A free 30-minute assessment gives you a written gap analysis and an exact program recommendation.

Free 30-minute assessment · Written gap report · No obligation

And That Is Only the Measurable Cost

The calculator does not count everything a workplace problem can damage.

The estimate includes modeled direct costs and internal response time. It does not attempt to put a dollar value on employee turnover, lost productivity, damaged trust, management distraction, reputational harm, increased insurance costs, or the operational effect of prolonged litigation.

That is intentional. The visible estimate should remain understandable and defensible.

What Prevention Changes

The best time to build the response is before the complaint.

Give Employees Somewhere Safe to Report

An independent reporting channel allows employees to raise concerns without depending on the normal management chain.

Train Managers Before They Have to Respond

Managers learn what to recognize, escalate, document, and avoid doing after a concern is raised.

Investigate Without Conflicts

Neutral investigation support protects the integrity of the process when internal HR or management is too close to the matter.

Create the Record Before It Is Requested

Training records, acknowledgments, complaint documentation, and corrective actions are organized before a charge or lawsuit tests the company's response.

Real Results

The calculator is directional. The outcomes are documented.

A single engagement year with a national technology client. Each figure, including how the avoided exposure was modeled, is explained in the case study.

153
Employee complaints received
Zero
EEOC charges
81
HR work-days restored
$2.9M
Estimated first-year exposure avoided
Read the Full Case Study
See exactly how this estimate works

The calculator multiplies the number of serious workplace matters selected by the estimated direct cost per matter. It then adds the estimated internal time required to receive, investigate, document, and resolve each matter.

The $160,000 direct-cost default. Hiscox reviewed 1,214 closed employment claims at businesses with fewer than 500 employees. Roughly a quarter of those charges resulted in a defense and settlement payment, and those averaged $160,000 in total. That is the figure cited elsewhere on this site, so the number is consistent wherever you find it.

The internal-time defaults. 32 hours per matter at a fully loaded cost of $78 per hour. These are empathiHR's own operating assumptions drawn from how long our engagements actually take, not published research, and we would rather say so than imply a source that does not exist. Both are editable in the calculator, which is the point of showing them.

The calculator does not estimate the likelihood that your organization will experience a claim. It models the potential cost if the number of matters selected occurs.

Actual costs vary. This calculator is general information and is not legal advice, an insurance-coverage opinion, or a guarantee of results.

Source: Hiscox, 2017 Guide to Employee Lawsuits
FAQ

Common questions

Is this predicting that my company will be sued?
No. You choose how many matters to model. The calculator shows what those matters could cost using the assumptions displayed.
Why is the default cost $160,000?
Hiscox studied 1,214 closed employment claims at businesses with fewer than 500 employees. Among the charges that resulted in defense and settlement payments, the average total was $160,000. You can replace that figure with your own assumption, including a lower one.
What counts as a serious workplace matter?
Examples include formal harassment or discrimination complaints, third-party investigations, agency charges, retaliation allegations, or matters requiring employment counsel.
Does EPLI eliminate this cost?
Not necessarily. Coverage depends on the policy, exclusions, deductibles, limits, reporting requirements, and facts. Insurance also does not train managers, receive complaints, investigate concerns, or create the documentation supporting the employer's response.
Why does the calculator not show an empathiHR return on investment?
Pricing for employers with 15 or more employees depends on headcount, employee locations, state requirements, and program scope. Showing a single public price would produce a misleading result. The free assessment provides exact program pricing.
What does the Texas Small Employer Program cost?
The program is $129 per month for qualifying Texas employers with 1 to 14 employees.
How do I get exact pricing for a larger organization?
Complete the free 30-minute assessment. You will receive a written gap report and a program recommendation based on your actual roster and locations.

The estimate is useful. Your actual gaps matter more.

In 30 minutes, empathiHR will review your policies, training records, reporting options, workforce locations, and complaint process. You receive a written gap report and clear program pricing based on your organization.