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Every
employer and supervisor knows that they can be sued for
sexually harassing an employee, wrongfully terminating
someone, or purging the firm of elderly employees. Most
employers and managers think, "My Company doesn't do
things like that, so getting sued could never happen
to me." But, the odds say it will.
Why Private Companies Should Consider Buying
EPL Liability Coverage:
• Employers are facing increasing
legal obligations while managing their workforces
• Increased awareness and visibility of employment related lawsuits
• Settlements can have a significant impact on the company’s financial
stability
• Cost to defend against employment suits is high regardless of the outcome
• An employment lawsuit, if not handled properly, can cause irreparable
harm to a company’s reputation
• Lawsuits based on language in employee handbooks and other written policies
and procedures are ..increasingly common
• Compliance with laws in the workplace is costly, requires expertise, monitoring
and training
Here are some statistics:
• 80% of those sued feel that
the suit is baseless and unfair
• There are 550 new employment suits a day
• 41% of jury verdicts are against firms with only 15 to 100 employees.
With respect to costs, here are some other statistics
• Defense costs average over $100,000, and cases typically last over two
years
• 67% of tried cases result in a victory for the plaintiff
• At least 15% of all verdicts are in excess of one million
Given these realities, it becomes
important to ask: "What are the telltale signs of employment
liability exposure? What are the signs of a division
or company at risk?"
The following are all indicators of
employment practices liability, and should be managed
carefully:
Organizational change? Mergers, acquisitions,
divestitures, spin-offs, consolidation, downsizing,
high growth, or reengineering. These activities can
cause layoffs, dramatic changes in career opportunities,
demotions or more selective promotions. These are all
fodder for employment claims, and must be carefully
managed.
Significant use of a contingent work
force? Overuse or misuse of a contingent workforce
can cause the court to deem the workforce "employees",
with concomitant rights to monetary and non-monetary
benefits.
Aging baby boomers? Age 40 starts
the protected age class under Federal law. Changes
in their employment status and benefits must be carefully
managed.
Employees working from home (telecommuting,
home workers)? Employers pick up the duties to ensure
a safe work area (for example, proper lighting, chairs,
and desks) and privacy (for example, accessibility
to online materials).
Contact
Us to
get your quote today! |
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