To Our Valued Clients:
Employment Practices Liability – A Growing Concern Amidst the Pandemic
Employment Practices Liability (EPL) Insurance covers businesses against claims by workers that their legal rights as employees of the company have been violated. During these unprecedented times a question all employers need to ask themselves is: ‘Is there an increased risk of exposure due to the Coronavirus?’
Employees may (with or without justification), claim their termination was due to the employer’s unwillingness or inability to provide a safe work environment for the employee. For example, a laborer could tell his employer that they are unwilling to perform their job as mandated by the employer, as they feel they are not being sufficiently protected from others in the workplace. As a result they may feel that they are at additional risk to contract the Coronavirus. If the employer then fires the employee for their unwillingness to work, the employee could conceivably file suit against the employer for wrongful termination. With the likelihood of future layoffs this scenario becomes all the more plausible.
Long before our world was changed by Covid-19, EPLI was one of the fastest growing lines of insurance, nationwide. Studies show that an employer is more likely to have an EPL claim than a GL claim – a trend made only worse by the current pandemic.
EPLI protects companies and individuals against loss from damages as well as defense costs arising out of employment practices disputes, (above and beyond pandemic related instances) such as:
- Discrimination based on gender, race, color, national origin, religion, disability or age.
- Sexual or other unlawful harassment in the workplace.
- Wrongful termination.
- Failure to employ or promote.
- Employment-related defamation or invasion of privacy.
- Wrongful discipline of an employee.
- Employment-related infliction of emotional distress
Defense coverage for Wage and Hour law claims may also be endorsed. All of these exposures are excluded under your General Liability policy. Even frivolous claims would cost you valuable time and money to defend.
Please give us a call if you would like a premium indication for this important coverage on a policy that will afford the best value for your specific needs.
DeSanctis Insurance Agency, Inc.