| As the insurance market
continues to harden, there’s a tendency for
companies to review the necessity of each coverage
in their insurance portfolio. Some have asked if they
need employment practices liability (EPL) coverage.
The answer is a resounding yes!
EPL claims are on the
rise, with further growth expected. In fact, EPL
claims now make up 60% of all civil litigation in federal
courts. Most troubling is that the scope of litigation
continues to expand.
One of the most recent causes
of actions has involved “whistleblowers,” employees
who have personal knowledge of wrongdoing within
their companies. In the past, fear of employer retaliation
prevented many of these individuals from coming forward
with the information. Today however, when retaliation
occurs, these employees usually file a claim for retaliatory
discharge, wrongful termination, and a violation of
their first amendment rights of free speech.
So it’s
important to maintain appropriate EPL coverage for
these types of claims. Although the coverage itself
is essential, another aspect involves the loss prevention
services that most carriers supply. Frequently, the
insurer will offer a manual with guidelines on how
to reduce this exposure. Many also supplement the manual
with a toll-free hotline to help assist policyholders
with loss prevention.
Given the increased activity
in this area, we believe that EPL should be a part
of your insurance protection plan.
InsureCast specializes in Employment Practices Liability
(EPL) insurance. Please click
on apply now to get a quote. |
