In our litigious society, frivolous litigation and groundless claims rack up astronomical defense costs for your clients and their insurance companies. While hacking and cyber liability have been getting all the recent press, Employment Practices Liability (EPL) claims quietly continue their upward trajectory.
It seems employment laws in the U.S. often favor the employee. Current employees, ex-employees and even rejected job applicants may file actions against employers. With the chips stacked in this way, it might helpful to discuss common EPLI claim drivers with your clients. Those claim drivers include:
- Social media
- Mobile electronic devices
- Marijuana legalization
- Telecommuting/job-sharing
- Pregnancy Accommodation
- Defense of Marriage Act
These trends and laws create more employment policies to implement and enforce. They also create additional venues for harassment and discrimination charges and the potential for more workplace accommodation requests. For these reasons, proper insurance coverage, risk management services and employee training is critical to mitigate the EPL exposures facing your client’s business.
In 2015, PLM began providing Employment Related Practices Liability (EPLI) coverage to all its insureds. Offering that protection at a very modest cost has proven to be a wise investment.
Though fewer than a dozen claims have been reported over the last two years, many of our insureds found themselves in situations with current or ex-employees who had an axe to grind. We’ve received several calls from concerned insureds who weren’t sure if a claim would arise but sought pre-emptive legal advice. Fortunately, we offer that service at no additional cost. For direction and advice related to your client’s potential EPL scenario, simply call our legal helpline hosted by Jackson Lewis at 877- LAW-4EPL (877-529-4375) and identify yourself as a PLM broker.
When an actual claim arises via an EEOC complaint or otherwise, please instruct your client to report the situation to us or to you in the usual fashion. We have partnered with qualified EPLI claim specialists and attorneys who will investigate the allegations and vigorously defend your client’s company when appropriate. As always, we are happy to assist and welcome your questions.