| |  Today's
employers - big, small & everything inbetween - are facing an every
increasing likelihood that they will have to deal with some form of employment
related claim. Workplace conduct that was
considered acceptable - or at least tolerated - just a few years ago,
can now land a company in court!
As
is often the case with any evolving area of liability, some say
that it's just another "payday" at the expense of
hard-working businesspeople, while others say that too many folks are still
getting away with outrageous - and illegal - conduct.
Who's
right or who's wrong is not the subject of our discussion here at eplinsurance.com.
Our aim is simply to provide you with important information on this issue, with
suggestions on how to manage the risk; and to do so in terms are are clear and
understandable - without scare tactics or a bunch of technical mumbo-jumbo.
Ultimately,
the decisions are up to you - the business owner, corporate executive, HR
manager, etc. You know your situation better than anyone else (or at least
you should!), and you know best how much of this risk you can handle on your
own, and how much you might wish to consider transferring through the use of
insurance.
One
thing is for sure, though: You should not make the mistake of
ignoring this risk or, worse yet, assuming that, "it can't happen to me; to
my business." Just for the record, let's review some of the most
common excuses for not dealing with the issue of Employment Practices Liability:
 |
"My business is like
a family. My employees would never sue me!" (You
may be right - your business might be like a family - and it may very well
be a dysfunctional family!) |
|
"If there is a
problem, my H.R. department will deal with it." (Again,
you may be right. But, what if your H.R. department is NOT
dealing with the problem, or worse yet, your H.R. department IS the
problem?) |
| "We have written policies
in place to prevent these problems." (No
doubt about it, having set forth written policies, and even an employee
handbook, is an excellent step. However, if those policies are not
consistently enforced, you could still be in trouble.) |
Recent
events on the national level have brought the issue of
workplace conduct to the forefront. It would probably be fair to
say that the
"watershed" event in this area was the confirmation hearings on Justice
Clarence Thomas' nomination to the Supreme Court. Anita Hill's allegations
of misconduct on Justice Thomas' part - and the manner in which the
members of the Senate Judiciary
Committee handled the situation - changed the landscape of how we view
conduct in the workplace.
More
recently, of course, we watched as President Clinton's workplace
misconduct landed him in court - a court of law with Paula Jones and
others; a court of impeachment in the U.S. Senate with Monica Lewinsky - not to mention the
"court" of public opinion!
Whatever
your political stripes, no one can afford to ignore the issue of
workplace conduct anymore! High profile defendants in EPL
lawsuits over the past decade have included Texaco, Denny's,
Baker & McKenzie, Montel Williams, State Farm, Microsoft . . .
indeed, the
"battlefield" is littered with big names. Keep in
mind, however, that these are only the headline cases. The vast majority of EPL
claims involve small-to-medium sized businesses.
In
fact, did you know that approximately 60% of
all litigation in federal courts throughout the U.S. is employment related?
Did
you know that in 2001, the Equal Employment Opportunity Commission ("EEOC")
received over 80,000 claims?
Did
you know that in 2001, the total payments to EPL claimants came to nearly $300,000,000?
In fact, the average cost of each claim is over $250,000?
Legal
fees and related defense costs are now close to 50% of the overall
loss experience in this category - and a key consideration is the fact
that the cost of defending these increasingly complex cases applies
even when there is an ultimate finding of no liability! This
means that even if you, the employer, have done nothing wrong, you
could still be faced with tens of thousands or even a hundred thousand
dollars - or more - of payments to lawyers, investigators, etc.,
regardless of the outcome of the case!
No
employer, large or small, public or private, for-profit or
not-for-profit, can afford to ignore this disturbing trend.
Potentially disastrous consequences face those who assume that,
"it can't happen to me." It can happen to you!
In fact, it could be happening to you right this minute, but you don't
know it . . . . YET!
Fortunately,
solid protection from this type of lawsuit is available - and it's
probably more affordable than you might think!
A
well-designed Employment
Practices Liability ("EPL") Insurance policy can cover you
and your company against allegations of wrongful termination, sexual
harassment, and discrimination, based upon:
|
Protected
Status ("Americans with Disabilities Act") |
|
Gender
Bias |
|
Retaliation
(including "whistleblower") |
|
Wrongful
Denial of Training |
|
Wrongful
Deprivation of Career Opportunity |
|
Wrongful
Discharge (including "constructive discharge") |
|
Employment
Related Defamation |
|
Wrongful
Failure to Hire or Promote |
|
Misrepresentation |
|
Wrongful
Discipline |
|
Age
Discrimination |
|
Hostile
Workplace |
|
Quid
Pro Quo |
|
Failure
to Supervise |
|
And
more . . . . . |
Of
course, as the saying goes, "an ounce of prevention is
worth a pound of cure", and this is so very, very true when it
comes to workplace liability issues.
 In
fact, a number of insurance companies offer their employment practices
liability ("EPL") policyholders
loss control programs, designed to help recognize, identify and
correct issues which might lead to a claim. Depending upon
the carrier, and the terms of the policy, these services are often
offered at greatly reduced rates, or are sometimes provided at no
additional charge.
We
work with a number of
different insurance carriers, actively writing this specialized type
of coverage. There is no such thing as a "standard" EPL policy.
Each insurer has its own "appetite" for different types of
clients.
Whether
your business is large, medium-size, or small;
high-tech or low-tech; professional firm, manufacturer, retailer,
wholesaler, telecommunications, etc. We can provide you with a
comprehensive review of your situation - including a review of your current EPL
policy, if you have one already. We will then work with you to design an
effective, affordable EPL insurance program.
Give
us a call today, toll free at, 877-320-4061,
or click here 
and fill out a quick and simple form, which will get the ball
rolling right now.
Bruce
R. Swicker
|
