What happens if your business is accused of illegal employment processes? Sexual harassment, wrongful termination, discrimination, and retaliation are things that can happen in the workplace. Employment practices liability insurance is designed to protect you against a variety of employment practices issues, ranging from inappropriate conduct in the workplace to discriminatory hiring practices.
Protect Yourself from Sexual Harassment Claims
Claims of a hostile workplace or sexual harassment in the workplace can be extraordinarily expensive. Businesses may want to settle before these issues go to court in order to preserve their reputation and integrity. Even false allegations of harassment can cost a business a lot of money to fight because of legal fees and administrative expenses.
Employees are becoming increasingly litigious and, moreover, businesses cannot always protect themselves from the actions of their own employees. Employees may cite invasion of their privacy, defamation, a failure to promote, and other employment-related issues, and a business may find itself responsible for not only their claims but associated fines and penalties.
A single sexual harassment suit against a business can cost between $50,000 to $100,000. For small to midsized businesses, this can easily spell disaster.
Employment Practices Liability Insurance
EPLI can protect against everything from sexual harassment claims to discrimination claims. Defending a business against a discrimination claim or similar can cost up to $300,000 and take up to 24 months. There were 91,503 accusations of workplace discrimination filed with the Equal Employment Opportunity Commission (EEOC) in 2016. This is a very real risk for businesses. Businesses need to be able to protect themselves from these issues proactively.
It is not always enough to remain stringent with human resources policies or employee training. Employment practices issues can come up at any time, regardless of company culture — and the cost of defending against false claims is often just as high as the cost of defending against true claims.
EPLI cannot prevent a lawsuit from occurring, but it can greatly reduce the financial impact such a lawsuit has on a business. Businesses are able to reduce the amount they need to pay in for their liability and their legal fees, even if they were, in fact, the wrongful party within the situation. Further, EPLI can protect companies from unproven claims that are made by employees but nevertheless need to be dealt with in a proactive fashion.
Even the best employers can get sued. When that happens, EPLI can help. To learn more about protecting and growing a business, call us today at DeVenne Insurance. Don’t forget to sign up for our blog for updates sent to your inbox.