Five Reasons Why Your Business Needs Employment Practices Liability Insurance (EPLI)
If you have employees, you are exposed to potential employment liability claims. Employees know their rights, and it is time for all employers to be more informed about how to protect their companies. An EPLI policy covers claims made against directors, officers, employees, the company and its subsidiaries. The policy can cover wrongful dismissal/termination, sexual/racial/disability harassment, sexual/racial/disability/religious discrimination, employment related libel, slander, defamation and invasion of privacy, wrongful failure to employ or promote and retaliation.
Reasons To Secure EPLI
- Harassment & Emotional Distress Claims. A manager at a company party made racial remarks to a co-worker. Other managers did nothing to assist the employee. These remarks continued for over a 10 minute period of time. The employee filed a demand in the amount of $250,000 for emotional distress resulting from harassment.
- Pregnancy Discrimination Claims. A top sales leader announced her pregnancy. A few weeks later she was not invited to a golf outing with clients and prospects to which she had previously attended, and management reassigned her top prospects to a junior sales rep. When she inquired about this, management replied that they assumed, due to her pregnancy, she would not be interested attending this event. After she received a much smaller bonus than in previous years, the associate filed a claim for pregnancydiscrimination with the EEOC. The claim was settled for $125,000.
- Hostile Work Environment Claims. A married manager of a heating company had an affair with one of his administrative assistants. The assistant ended the affair and was terminated a month later. The assistant then filed an EEOC charge against the firm and the manager, alleging a hostile work environment and retaliation. The case was settled for $325,000.
- Many Insurers Offer Free Legal Help. You can call an attorney to help you through a tough issue.
- Company Reputation At Stake. A company’s reputation in the marketplace can be severely damaged by employment practice claims. The negative publicity may be followed by potential reluctance of your clients and/or suppliers to trade with the company.
Insurance coverage for EPLI is completive and available through many markets. Call us today for a free quote. As a business owner, you can ensure that your company is protected by keeping your general liability insurance, workers’ compensation insurance and commercial auto policies updated to reflect changes in your business. Lautenbach Insurance Agency can help you review your risk and provide coverage options for you. We have access to many competitive markets and will design the right combination of coverage and pricing.