What is EPLI and Why Is It Needed?
Regardless of size, the likelihood a business will suffer an employment practices claim is higher than ever. Litigation can include, but is not limited to, allegations of workplace discrimination, harassment, wrongful termination, retaliation and violations of wage and hour laws. A comprehensive Employment Practices Liability policy is designed to help protect your business against the growing costs to defend these sometimes-frivolous lawsuits and cover damages such as settlements, judgments and verdicts. Access to free risk management services is included with this insurance, which will help you prevent employment-related claims before they take place.
An insurance agency settled for $80,000 with a Non-Exempt Customer Service Representative for unpaid overtime. The CSR was paid $20/hour by the agency and never complained about her workload. Frequently, she was asked to come in early for conference calls and to stay late at the end of the month to ensure that all policies were billed prior to month end close. Without having any knowledge of any wrongdoing, the owner was served with an FLSA lawsuit from the CSR who had been quietly tracking her hours worked. The agency had no way of knowing whether her calculations were accurate and was advised by counsel to immediately settle for the requested amount.
Internet/Email Liability: An employee who intended to email a pornographic joke to only a single recipient accidentally pressed the wrong button, sending the off-color joke to the company's entire workforce. The employer made the employee send a follow-up email apologizing to the workforce. Two months later, during a company downsizing, an employee sued for a hostile work environment and used the email as evidence.
These are only two very real examples. There are countless possible scenarios. Every business, even those without employees, need EPLI. Vendors can successfully sue you because of a "hostile work environment" if they're offended by something in your office.
You can protect yourself, and your clients, by answering just a few questions. Click Here for an EPLI quote request form.