#MeToo…one of the most discussed topics in 2018. The Me Too movement has brought to light the widespread frequency of sexual harassment and sexual assault, and more importantly has highlighted its prevalence in the workplace.
The use of employee training and other educational programs can help business owners prevent these types of illegal activities among its employees; however, the ability to eliminate these behaviors completely is difficult to imagine. So what additional options do business owners have to protect the company?
Employment Practices Liability Insurance (EPLI) offers business owners certain coverages for claims made by employees, former employees, and potential employees. While this type of insurance is not required by law, it is highly recommended given the large number of employment-related lawsuits initiated each year. This especially holds true for small- to mid-sized businesses, as the cost of attorneys’ fees and any settlement costs could be detrimental to the company’s bottom-line.
There are several types of inclusions in an EPLI policy, and it is important to know which ones your policy contains: wrongful termination; discrimination; retaliation; defamation of character; and sexual harassment (to name a few). For any claims arising under your EPLI policy, legal defense costs are generally provided for, but coverage is limited to financial damages only.
Premiums for EPLI policies typically average $1,200 annually, which is minimal given the costs surrounding employment-related lawsuits. Of course, premiums can vary among different types of businesses and often relate to these types of factors: number of employees; business size; employee turnover; hiring and firing practices; and claims history.
No business is immune from an employment-related lawsuit; therefore, it is essential to be proactive to best protect the company. Employment Practices Liability Insurance is one way to do this. Contact BrookStone Insurance Group for more information regarding EPLI protection for your company.