A relatively new area of legal concern for business owners is Employment Practices Liability (EPL).
Formerly the concern of large high profile employers, EPL has filtered down to small employers of almost any size.
Using the experience gained in high profile cases as a template, plaintiff’s lawyers are going after “you” as a convenient l local target.
No matter what the cause, the results are potentially devastating to you as a business owner. Allegations may be untrue, unfounded or even a ‘pack of lies’, but when a disgruntled employee teams up with an aggressive attorney, your business is in the cross hairs.
Business Owners or General Liability coverage does NOT cover Employment Practices losses. And, some insurance experts estimate that you are more likely to be sued by an employee than by anyone else.
|Some of the reasons cited:||Some allegations:|
|• The Poor Economy
• Evolved Case Law
• Heightened Awareness
• Creative Plaintiffs Bar
• Wrongful Termination
• Sexual Harassment
• Gender Bias
THE GOOD NEWS: Insurance for small employers is readily available and inexpensive.
In today’s litigious environment, the protection afforded by Employment Practices Liability Insurance (EPLI) has become more valuable than ever.
Nothing is static when it comes to your company’s employment-related liability exposures. Things are constantly changing because of passage of new laws and the findings of the courts.
One “hot button” topic is Wage & Hour claims. As a rule, insurance companies do NOT like to provide coverage for this exposure… they view it as a “maintenance issue” (poor record keeping). A few will offer a “sub limit” for this exposure. Clearly, the burden is on you as employer to keep accurate records and pay wages accordingly.