5 Employment Practices Liability Insurance Claims Trending in 2020 – Are You Covered?

September 07, 2020 Blog

Handy Information from The Business Insurance Center

As a business owner, you want to focus on those issues that will keep customers happy and coming back for more. You expect your team to act like professionals, thus reducing the likelihood of disgruntled clients and co-workers. However, reality dictates that this isn’t always the case and sometimes people act out in ways that create an atmosphere of fear. How do you keep great talent if you become known as “that” employer?

Give your team the support they need by curating an atmosphere of respect and safety. For those times when someone steps out of line and a lawsuit is filed, be sure you have employment practices liability insurance in place. The brokers at The Business Insurance Center assist business owners like you every day to get the best coverage at reasonable rates. Contact us to see how we can help fill in any gaps in your policies.

5 EPLI Trends and What You Can Do about them

In a litigious society, you must always be aware of your company’s actions and do what you can to protect your employees. Here are five trends that demand action to shore up your current protocols so you can build a company culture that works together to keep everyone safe:

  1. Retaliation: This can occur if an employer punishes an employee for engaging in a legally protected activity. It can include cooperating with an investigation with an outside entity like the Equal Employment Opportunity Commission (EEOC). Retaliation can take many forms, like being fired or being passed over for promotion. Here is how you can thwart this attitude of retaliation:
    • Create a policy against retaliation and be sure all your employees are educated on the matter.
    • Implement a confidential process to handle complaints and communicate the anti-retaliation policy to complaining team members in a confidential manner.
    • Keep documents on everything.
  2. Sexual Harassment: The #MeToo movement sparked a rise in sexual harassment claims and it spans all types, including LGBT-based ones. You can mitigate potential claims against your company and team when you:
    • Develop the needed policies against sexual harassment
    • Provide regular training to prevent sexual harassment from occurring in your workplace
    • Create the type of company culture that does not allow for nor support sexual harassment
  3. Wage and Hour Litigation Threat: Some people participate in the gig economy where they work as contractors, but they should be classified as employees. The result is that they don’t enjoy the same pay structure or benefits. To keep lawsuits to a minimum or even non-existent:
    • Be sure you have classified all your employees properly
    • Stay up to date on new laws
    • Utilize government resources like the Fair Labor Standards Act guide
  4. Gender Pay Gap: Yes, even in 2020, there is a gap between what women earn versus their male counterparts. You don’t have to stay behind the times.
    • Encourage women to succeed with policies like flexible hours and parental leave.
    • Create mentorship programs and opportunities for women.
    • Pay the same for the position, not the gender.
  5. Marijuana Legalization: More and more states are legalizing marijuana for recreational and medical use. This puts employers in a precarious position, especially when using dangerous equipment. You can be prepared by taking these steps:
    • Stay up to date with the marijuana use laws in your state.
    • Review relevant laws before you fire or refuse to hire a worker over marijuana usage.
    • Create and enforce drug policies that focus on safety in the workplace.

Protect Your Business and Your Employees with EPLI from BIC

Protecting your team begins with plans aimed to create a company culture free from fear of retaliation and is open to discussion. At The Business Insurance Center, we understand some of the issues you face, and we’re here to help you get the coverage you need. Contact us today to shore up those areas you may not realize are weak.

Request a quote online or call and speak with a knowledgeable and experienced broker at The Business Insurance Center about employment practices liability insurance. We have a 24/7 call center to serve you and an online Live Chat operator. 

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