Posts Tagged "employment practices liability insurance"

Employment Practices Liability Insurance – A Vital Component to any Business

Posted by on Aug 21, 2015 in News | 0 comments

EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. No matter the size, Employment Practices Liability Insurance (EPLI) coverage is a vital component to any business’ insurance package. In recent years the number of employee accusations and charges employers face has grown dramatically. Unfortunately many small businesses lack human resource professionals or legal counsel on staff to guide them through the minefield of risks they face every day. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage. How does EPLI protect employers? It protects employers from claims brought by employees who allege: Sexual harassment Discrimination Wrongful termination Breach of employment contract Negligent evaluation Failure to employ or promote Wrongful discipline Deprivation of career opportunity Wrongful infliction of emotional distress Mismanagement of employee benefit plans EPLI covers claims brought by: Full time, part-time, temporary, and seasonal employees Recognized volunteers Applicants Independent contractors Leased employees The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies. For more information about EPLI, and to make sure your business is covered, contact us...

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Your Business is Not Fully Covered and Here’s The Reason Why!

Posted by on Feb 17, 2015 in News | 0 comments

Earlier this month I read an article on Huffington Post, titled, “Sweet Cakes by Melissa Violated Oregon Law By Turning Away Lesbian Couple, Officials Rule.”  The owners of this bakery declined to make a wedding cake for the lesbian couple.  The Oregon Bureau of Labor and Industries ruled that the bakery owners will have to pay the lesbian couple up to $150,000 for discrimination.  Most business owners aren’t aware of this, but your General Liability policy excludes Employment Related Practices Liability.  After reading the article, the first thing that popped into my head was that this will most likely be an out of pocket expense for these business owners. You see, Employment Practices Liability is a separate policy.  While you may get some throw in coverages on your Business Owner’s Policy, it’s usually a very small limit.  For example, Hartford gives an automatic $10,000 limit.  As you can see, that’s nowhere near enough to cover the potential judgment in this specific case.  And, what about the legal expenses?  Since there is no Employment Practices Liability coverage on the General Liability policy, there would be no duty to defend the lawsuit.  Basically, this couple is potentially out the $150,000 plus all legal expenses, and legal expenses thus far are a fixed cost that will be payable to the legal team. Employment Practices Liability offers coverage for business owners against claims brought on by employees, former employees, potential employees, and third parties.  The policy defends the employer and pays damages when allegations of discrimination, wrongful termination, harassment, retaliation, and inappropriate employment conduct are brought against the business owner. In the US we have seven statutory laws regulating employment practices.  The Fair Labor Act; the Equal Pay Act; Title VII of the Civil Rights Act; Age Discrimination in Employment Act; the American With Disabilities Act; the Family and Federal Leave Act; and the Uniform Services Employment and Re-employment Rights Act are the federal laws that employers have to abide by.  In addition, each state has its own statutes regulating employment practices and discrimination against sexual orientation.   Our own city of Houston amended Ordinance No. 2014-530 to include a number of changes, especially discrimination against sexual orientation in privately owned businesses operating public accommodation establishments.  I’m sure we will continue to see more states add similar laws to protect this group from discrimination. In today’s litigious society, business owners need Employment Practices Liability more than ever.  This policy will protect them from suits brought by employees, former employees, prospective employees, or third parties.  This insurance covers the following types of acts:  discrimination, wrongful termination, harassment, retaliation, and inappropriate employment conduct.  Some of these coverage triggers are both common law and statutory law exposures.  Business owners need this insurance policy to avoid substantial financial losses resulting from costs of damages and defense...

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