When an Employee Turns Against You, Make Sure You’re Protected
Even if you pride yourself on being an outstanding employer, you’ll never be completely removed from the potential of being sued by an employee. The reality is that we live in a litigious culture.
Consider the following scenario: You terminate an employee who consistently shows up late for work. You’ve provided several warnings and been especially compassionate, allowing him a lot of flexibility in an effort to accommodate his needs. Still, he promptly files a wrongful termination claim.
Or, two employees are under consideration for a managerial position. You promote the more qualified. The other, however, claims she was discriminated against.
These safeguards against abuse are now abused themselves, and those filing the suits, too often, seem to hold all the power. Regardless of what the law says, those forced to defend their reputations are guilty until proven otherwise.
Employment Practice Liability Insurance (EPLI)covers the cost of defense, along with other legal costs, including administrative hearings and filings against such claims. Workers’ Compensation Liability Insurance safeguards the business owner in the instance an employee is injured in a work-related accident. The policy, however, does not extend to alleged emotional distress or personal rights violations.
Employee lawsuits are much more than a minor inconvenience. They can quickly evolve into a major distraction, reducing productivity and morale. And the cost of defending them can escalate even faster. Which makes EPLI insurance required coverage for doing business on any scale today.
To request a quote, call Peter Green Insurance at 714-258-2800 or 888-725-7776, or click here.