EPLI: Discrimination and Harassment Insurance for Businesses
Got harassment insurance? It seems everywhere we turn these days, whether it’s Hollywood, politics or the evening news, claims of sexual misconduct are everywhere. With harassment, discrimination, and other employment-related issues on everyone's mind, you may be wondering how you can protect your business from credible – and even not so credible – allegations. Consider the fact that your business is likely to be held liable for the actions of its upper management and other staff. How do you protect yourself from the actions of a manager that you hired? What happens in the event of litigation?
Discrimination or Harassment Insurance Claims
Any business can be the target of an employee-discrimination or harassment claim. These claims do not need to originate from any actions you have taken or actions of which you are aware. A case could originate against lower level management. Because the business hired these managers, their actions can become the company's responsibility. Harassment insurance can help.Nevertheless, it’s not just valid claims that you need to worry about. Employees may mistakenly believe that they have been the target of discrimination as well. If this happens, you will still need to spend money defending your business from these claims. The money that you spend may not be recoverable from the employee, even if the employee loses the case. Consequently, even an invalid case could be financially damaging.Finally, in the area of employment law and discrimination, there may be legal issues of which you are simply unaware. These issues could end up being problematic for a company before they even realize an issue has occurred. An employer could fire an employee that raised a false claim, opening that employer up to a retaliation claim -- or the employer could turn a potential employee down for a job without realizing they have discriminated against them for being a protected class.
Employment Practices Liability Insurance
Employment practices liability insurance covers a business in the event that a harassment or discrimination suit arises. This offers coverage not only for legal fees and court costs, but also for eventual settlements. The payouts are based on the amount of coverage that is offered, so each business needs to determine its own risk factors and how much coverage it should have.EPLI also covers more than just discrimination and harassment suits. It can also cover things such as wrongful termination or allegations of retaliatory action. Any company that has employees should hold this type of insurance.Like any other type of business insurance, EPLI insurance is designed to protect businesses against a worst-case scenario. Hopefully, your business will not need to use it, but a business that does face this type of claim could be facing costs of millions of dollars. Having EPLI coverage gives a business owner the assurance that even a worst-case scenario won't adversely impact their business -- and gives them more control over their company's financial stability and success. For more information, contact Brashears Insurance.