Workplace cultures, the state of the economy, and changes in employment law have all led to increases in employment related claims. Every business, including yours, faces the potential of an allegation and/or suit. Whether legitimate or not, you must respond and defend your business.
Employment lawsuits can impose a financial burden on your business that Employment Practices Liability Insurance (EPLI) can help reduce by protecting the business from employment related claims brought against your company, its managers, and its directors and officers. EPLI covers such things as age and gender discrimination; sexual harassment; wrongful discipline and termination; negligent decisions involving hiring, promotion, and compensation; breach of employment contract; emotional distress; mental anguish; invasion of privacy; libel; slander; etc.
Who Can Make Allegations Against You?
Current employees, past employees, job applicants, independent contractors and customers all have the potential to make an allegation or file a suit. The most common allegations made are: failure to employ, failure to promote, deprivation of career, wrongful demotion, wrongful termination, discrimination, harassment, retaliation, and federal/state/local civil right violations.
What Activities Expose You?
Your following routine business activities expose you to potential charges if handled in a manner which discriminates based on race, color, religion, sex, national origin, age, disability, or genetic information as outlined in the laws enforced by the EEOC (US Equal Employment Opportunity Commission) :
- Job Advertisements
- Application & Hiring
- Job Referrals
- Job Assignments & Promotions
- Pay & Benefits
- Training & Discipline & Discharge
- Employment References
- Reasonable Accommodations & Disability
- Apprentice Programs
- Terms & Conditions of Employment
- Pre-employment Inquiries
Even with the best proactive measures in place, groundless or fraudulent allegations can be filed requiring you to respond and defend your business which can be stressful, expensive, and time-consuming.
We specialize in helping businesses with their insurance protection, including their Employment Practices Liability risk. Contact us to discuss how your operations leave you exposed and the policy best suited for your risk.