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How To Protect Your Business Against Employment Practices Claims

Discrimination, Harassment, Wrongful Termination… are you familiar with these terms? Are you prepared to get a letter from an employee – current or former – alleging your company did one of these things to them?  Do you know how to protect your business against employment practices claims?

Sexual HarrassmentMost business owners are not prepared, particularly small business owners. But as it turns out, you are more likely to have an employment related lawsuit than a property claim. And 40% of these employment related lawsuits come from businesses with less than 100 employees. Simply put, every business with employees is vulnerable.

Employment related lawsuits are on the rise. Here’s a graph from the EEOC showing how claims have been trending up.

EPLI-Trends

What can you do to protect yourself?

Here are two solid strategies:

  1. Manage your risk. Implement an employee handbook that has policies and procedures to deal with discrimination, equal opportunity, sexual harassment, etc. Do annual employee performance reviews – written and signed. Use applications for hiring, and make written job offers. Have your employees sign them.
  2. Get Employment Practices Liability Insurance.

EPL Table 2

You can also get EPLI to cover wrongful act claims brought by third parties.

And many of the insurance companies offer free resources to help you manage your risk, such as unlimited telephone access to loss control services, and sample employee handbooks.

Let me know if you have an interest in finding out more about EPLI. We have a variety of programs available and will be able to find the one that fits your needs.

ELI GILLESPIE

I’m the commercial producer and owner at Gillespie Insurance Services.

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Posted on September 15, 2015 By Eli Gillespie

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Gillespie Insurance Services helps people and businesses in California, Arizona and Nevada.