Employment Practices Liability Insurance
The number of claims faced by U.S. businesses is on the rise. In fact, The Hiscox Guide to Employee Lawsuits estimates that you have an 11% chance of having an employment complaint filed against your company. And one small action can have a big impact on your
bottom line.
Employment practices liability (EPL) lawsuits are a growing concern in every industry, but the automotive aftermarket presents some unique circumstances.
Just think about it:
■ One of your managers knows there is a problem with a lift or other piece of equipment but has workers use it anyway.
■ An employee falls off a ladder and files a lawsuit against the ladder manufacturer—the ladder manufacturer then files a third party cross claim against your business for failure to properly maintain the ladder.
■ A worker develops arthritis or another repetitive stress injury from the day-to-day aspects of their job.
■ An employee is terminated for lack of performance and files a wrongful termination claim.
■ A new hire hears an explicit conversation in the break room and files a sexual harassment complaint.
You need a plan. You need coverage. You need to start asking
some very important questions. Start here:
1. Am I in compliance?
Federal and state regulations can be a minefield of liability for employers. Complicated and detailed, the Fair Labor Standards Act, the Americans with Disability Act, the Fair Credit Reporting Act, and various other regulations can expose a company to a slew of unforeseen employment liability. Begin by asking your HR department or consultant to formalize your employment policies and practices, then engage legal counsel to ensure you’re in full compliance. This document could be your biggest ally in the event of a lawsuit.
2. Is my staff in the know?
Companies that provide training see a dramatic drop in EPL claims. Be proactive in educating your staff on hot button issues like harassment and discrimination. Also, ensure that your supervisors and managers receive regular training on how to handle potential issues in the field. In addition to reducing your vulnerability to lawsuits, a strong training regimen also demonstrates your company is committed to workplace fairness should a claim occur.
3. Am I covered?
EPL is an area where a sound insurance policy can be a life saver. Here’s why: In addition to the prospect of an unfavorable judgment, the mere cost of going to court can spiral out of control.
Employment practices liability insurance (EPLI) is designed to ensure that your business is shielded from these costs, no matter what the outcome. EPLI provides a powerful layer of protection for employers against claims resulting from a broad range of lawsuits, reimbursing the insured for legal defense costs, judgements, and settlements. It covers your directors, officers, and management so they can handle their high-level responsibilities with confidence in an increasingly litigious world.
Yes, it’s reassuring to know that EPLI has you covered, win or lose. But it takes an experienced insurance partner to find the ideal coverage to minimize the impact of deductibles and exclusions and maximize coverage provisions. EPL claims are costly and common, but they don’t need to hamper your operations. You just need the right plan and the right coverage. There’s no question about it.
To learn more contact:
Franco Ganino
(800) 390-9099
FGanino@alliant.com
bottom line.
Employment practices liability (EPL) lawsuits are a growing concern in every industry, but the automotive aftermarket presents some unique circumstances.
Just think about it:
■ One of your managers knows there is a problem with a lift or other piece of equipment but has workers use it anyway.
■ An employee falls off a ladder and files a lawsuit against the ladder manufacturer—the ladder manufacturer then files a third party cross claim against your business for failure to properly maintain the ladder.
■ A worker develops arthritis or another repetitive stress injury from the day-to-day aspects of their job.
■ An employee is terminated for lack of performance and files a wrongful termination claim.
■ A new hire hears an explicit conversation in the break room and files a sexual harassment complaint.
You need a plan. You need coverage. You need to start asking
some very important questions. Start here:
1. Am I in compliance?
Federal and state regulations can be a minefield of liability for employers. Complicated and detailed, the Fair Labor Standards Act, the Americans with Disability Act, the Fair Credit Reporting Act, and various other regulations can expose a company to a slew of unforeseen employment liability. Begin by asking your HR department or consultant to formalize your employment policies and practices, then engage legal counsel to ensure you’re in full compliance. This document could be your biggest ally in the event of a lawsuit.
2. Is my staff in the know?
Companies that provide training see a dramatic drop in EPL claims. Be proactive in educating your staff on hot button issues like harassment and discrimination. Also, ensure that your supervisors and managers receive regular training on how to handle potential issues in the field. In addition to reducing your vulnerability to lawsuits, a strong training regimen also demonstrates your company is committed to workplace fairness should a claim occur.
3. Am I covered?
EPL is an area where a sound insurance policy can be a life saver. Here’s why: In addition to the prospect of an unfavorable judgment, the mere cost of going to court can spiral out of control.
Employment practices liability insurance (EPLI) is designed to ensure that your business is shielded from these costs, no matter what the outcome. EPLI provides a powerful layer of protection for employers against claims resulting from a broad range of lawsuits, reimbursing the insured for legal defense costs, judgements, and settlements. It covers your directors, officers, and management so they can handle their high-level responsibilities with confidence in an increasingly litigious world.
Yes, it’s reassuring to know that EPLI has you covered, win or lose. But it takes an experienced insurance partner to find the ideal coverage to minimize the impact of deductibles and exclusions and maximize coverage provisions. EPL claims are costly and common, but they don’t need to hamper your operations. You just need the right plan and the right coverage. There’s no question about it.
To learn more contact:
Franco Ganino
(800) 390-9099
FGanino@alliant.com