Employment Lawsuits Are Rising — Is Your Client Covered?
“You have the right to remain silent. Anything you say can and will be used against you in a court of law…” Many have heard this phrase, which is part of the Miranda Rights, by watching various crime shows on television. Police are required to inform those in their custody of their constitutional rights before interrogation.
In the business world, it’s easy to forget that anything we say or do can be held against us, but we’re seeing more and more claims that fall under claims that constitute discrimination, retaliation and/or mental anguish. As an insurance agent, are you informing your commercial clients of these risks and reviewing Employment Practices Liability Insurance, often referred to as EPL coverage?
In Baltimore, MD, one of the state’s largest car dealerships was sued by the US Equal Employment Opportunity Commission (EEOC) for refusing to allow a parts department employee to have a service dog at work due to his PTSD.
At Bloss & Dillard, we have markets to address your clients’ EPL exposures. We have an A+, admitted, claims-made option that can provide full prior acts coverage. This market does not have a hammer settlement clause, which is a benefit to the insured. It also provides worldwide coverage.
There are many other examples of where this exposure is present. In Lewisburg, WV, Walmart lost a $415,112 EEOC sexual harassment suit. In Cleveland, OH, a large trucking firm had to pay $65,000 to resolve an EEOC discrimination lawsuit for an employee whom they were charged with not allowing to have Saturdays off to observe his sabbath.
With EPL lawsuits up 110% since 2015 and 41.5% of these lawsuits being against small businesses with fewer than 100 employees, this is relevant coverage to discuss with your client.
As an agent, you do have “the right to remain silent” about this coverage but is that best for your client? If you’re interested in this coverage, think of Bloss & Dillard as an option for EPL coverage.
