Business owners and managers often have to make difficult decisions about their employees, including hiring, firing, giving promotions, and dealing with disciplinary problems. If an employee or potential employee feels they are being discriminated against or otherwise treated unfairly, they may file a lawsuit in New York courts, putting your business in a precarious financial situation. Employment practices liability insurance (EPLI) helps cover expenses associated with these lawsuits.
Employees expect to be treated fairly, and judged only on the quality of their work. To help support employees, New York and the Federal Government have passed many statutes including but not limited to the Civil Rights Act, the Americans with Disabilities Act, and the Family Medical Leave Act. These statutes provide important protections for employees, and when violated or perceived to be violated, can be fought in court for any damages. Proper training for all managers is essential, but this does not guarantee that mistakes will not be made. Employment practices liability insurance can help any business with employees better avoid the financial damages associated with a lawsuit due to discrimination or unfair treatment.
Running a business means making decisions and interacting with your employees every day. This can lead to any number of complaints from your employees. In some cases, employees can sue, and if you are found guilty of not complying with anti-discrimination laws you may be facing penalties and fines, as well as legal fees and damages. Even if the charges are unfounded, a lawsuit can significantly harm your business’s financial situation.
Many lawsuits brought by employees against their employers involve one or more of these charges:
If you have an employment practices liability policy and are sued for a covered incident, your insurance can help cover defense fees, court costs, and settlements up to your policy limit, minimizing your out of pocket expenses.
If your business has employees, it is at risk for a lawsuit based on how your employees perceive their treatment. No business is too small to need insurance against employment practices allegations. Many insurance experts recommend that all NY businesses with employees carry an employment practices liability policy to fully protect their business.
Your coverage and premiums are typically based on the size of your company, the employment history, and if you have been subject to lawsuits in the past. Your insurance agent can help you find the right policy for your business.
New York businesses have seen an uptick in employment-based lawsuits in recent years, with the associated legal fees, defense costs, and other expenses. While it is essential to remain in compliance with the laws and train all managers and employees, lawsuits can still occur despite the best training and intentions. With employment practices liability insurance, you can have important financial protections for your business against these lawsuits.