The number of lawsuits filed by employees against their employers is rising.

 

In one example, a small gift and flower shop owner was sued for pregnancy and gender discrimination when the claimant alleged the employer had repeatedly treated her differently as a result of her gender and condition. The claimant provided several fellow employees who attested to the treatment by the employer. The settlement cost the gift shop $42,000.

 

CHANGING SOCIAL AND LEGAL ENVIRONMENTS

Larger corporations are typically prepared to deal with these kinds of lawsuits while smaller or new businesses – which the majority of employment lawsuits are filed against – are often the most vulnerable.

 

Your commercial clients, regardless of their class of business, are at risk of an employment claim from the moment they interview a prospective employee. If they choose not to hire an interviewee, the individual could allege some sort of discrimination. Or if they hire that person and later fire them due to poor job performance, that discharged employee could claim wrongful termination.

 

Your commercial clients should carefully consider adding protection against employee lawsuits in today’s litigious society, especially given the growing diversity in our workplaces and changing cultural and social trends.

 

Even if a charge is false or groundless, it needs to be defended. Wrongful employment acts are governed by federal, state, and local laws, and apply to all businesses, regardless of the number of employees. Standard General Liability coverage does not address these exposures.

 

AFFORDABLE PROTECTION

One reason why larger corporations are prepared to deal with these lawsuits is they have the financial resources to do so. But now, smaller business can also protect themselves, thanks to affordable, quality protection available from Western Community Insurance Company in the form of an Employment Practices Liability Insurance (EPLI) endorsement.

 

A Western Community EPLI endorsement protects small businesses against employment-related claims brought by:

• Employees

• Independent contractors

• Leased employees

• Applicants for employment who allege their legal rights have been violated

 

EPLI provides protection for many kinds of lawsuits including:

• Discrimination (based on gender, race, age, or disability, for example)

• Wrongful termination

• Harassment (including sexual harassment)

• Other employment-related issues

 

Currently, the endorsement is available only for Western Community BOP customers with up to 250 full-time employees. Referrals are available for employee size up to 500 full-time employees. Both new and renewal business are eligible.

 

ADDITIONAL COMPLIMENTARY SERVICES

Your commercial clients can also take advantage of these other coverage services available under EPLI:

 

Risk Management

• A legal advice helpline that provides access to an attorney at Jackson Lewis law firm, for business owners to obtain general employment guidance (usage does not erode the limit).

• A loss prevention website with current, ready-made employment policies and procedures to keep clients in the know and to assist them in building effective human resources policies to mitigate their risks.

 

Claims

• Claims are managed by experienced and dedicated EPLI claim specialists with industry knowledge.

• Defense is provided by specialized employment law firms.

 

FUTURE ENHANCEMENTS

The EPLI endorsement will be available for CPP products next year after CPP products are migrated to Guidewire. EPLI may also be available for Farm and Ranch policies soon.

 

A TIME-TESTED SAFEGUARD

“This coverage,” says Amy Crawford, Director of Underwriting, “along with the complimentary additional services provided, is a great opportunity to help our small business owners navigate this responsibility.”

 

Amy also emphasizes that there is another, time-tested way for businesses to protect themselves. “It is an employer’s responsibility to provide a workplace free of harassment, discrimination, and retaliation.”

​

For more information about Western Community's EPLI coverage, please contact Amy at extension 4393 or acrawford@idfbins.com, or Dana May, Vice President of Underwriting and Policy, at extension 4387 or dmay@idfbins.com. 

​

MARKETING TOOLS