Claims for wrongful employment practices are on the rise. These claims can disrupt operations, damage your business’s reputation, hurt employee morale and negatively impact your bottom line. Complete our attached SCORECARD to find out whether employment practices liability (EPL) insurance is right for your business.
Employment Practices Liability (EPL) Insurance is a policy used to cover
your risks due to some of the most common employment-related
§ Wrongful Termination – The discharge of an employee for invalid reasons.
§ Discrimination – The denial of equal treatment to employees who are members of a protected class.
§ Sexual Harassment – Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior.
Thankfully, businesses can rely on Employment Practices Liability (EPL) insurance to protect against a wide range of wrongful employment practices claims, including wrongful termination, discrimination, sexual harassment and retaliation. As an added bonus, Directors & Officers/Management Liability Insurance Coverage generally includes Employment Practices Liability (EPL) insurance, our firm highly recommends these coverages.
*Coverage In Action, Real Life Examples*
§ Employment Practices Liability – Claim, $110,000 (Defense Costs)
When Mary, a Virginia business owner, received a complaint that her sales manager made crude and disparaging remarks to a female employee during a trade show, Mary took the claim seriously and conducted an investigation.
During the course of her investigation, Mary spoke with another employee who witnessed the incident firsthand. According to this employee, the sales manager’s actions were offensive and harassing. Ultimately, after much
deliberation, Mary terminated the sales manager for his behavior. Weeks later, the employee that witnessed the incident sued Mary for $500,000, claiming that after the incident, Mary had passed her up for promotion and
assigned her poor sales territories, all because she came forward with the details of what happened at the trade show. Although the lawsuit was groundless, Mary racked up hefty legal bills defending herself against the allegation.
Lawsuits like the one Mary faced can come out of left field and are much more common than you’d think. In fact, 3 out of 5 employers will be sued by a prospective, current or former employee while they are in business.
(Citation: EPL Insurance – Zywave)
Any requests for quotation and/or additional details, please contact a commercial broker at Action Insurance Group today! Call us at 403 457-1000
Action Insurance Group, Commercial Division