THIRD-PARTY EPLI
BY : MATT JONES VICE PRESIDENT OF SALES
What If I Get A Letter From An Attorney ?
And It Accuses Me Of Violating The Americans With Disabilities Act ( ADA )?
Your business receives a letter from an attorney . The claim is that your company website is not ADA compliant and lacks tools to turn off features like flashing graphics , turn on audio , include captions for videos , or adjust text size . Could a lawsuit ensue , and how much might it cost to settle ?
There are opportunistic lawyers working the ADA angle , and the increased activity goes hand in hand with social inflation , which drives higher insurance claim payouts and loss ratios . Ultimately , policyholders end up paying more for coverage because of lawsuits like this that are low-hanging fruit .
When a business is sued , there is intangible reputational harm that directly impacts an organization ’ s brand . Employment practices liability lawsuits often prey on emotions , triggering a “ make them pay ” mindset . Not only does the business suffer financially , but a lawsuit can also negatively impact employee morale , which can erode sales efforts , revenue , and employee retention .
The good news is that Employment Practices Liability Insurance ( EPLI ) exists to cover employee and third-party claims . We think it ’ s a must for businesses , and here ’ s why .
WHAT IF A CUSTOMER FILES A LAWSUIT OR CLAIMS UNFAIR TREATMENT ?
Without third-party EPLI coverage , you are liable for damages and all the associated costs — financial and intangible — that go along with a lawsuit . Not to mention , when a disgruntled customer complains about your business in an online review , social media post , or group text , it can snowball into a major loss of clients .
Third-party EPLI policies cover liability claims by nonemployees , including customers and vendors . If your business interacts with the public , you need thirdparty EPLI insurance . Beyond coverage , be sure your employee training and HR policies set expectations for how your people will communicate with clients . It ’ s a good idea to regularly remind employees that a remark or action they might think is “ no big deal ” could still offend someone else .
And keep in mind , any business with a website is interacting with the public and subject to liability claims . This is where we are seeing a lot of activity , specifically with ADA claims . The fix is simple and can prevent a lawsuit . Your website should comply with the ADA Standards for Accessible Design , which can be accomplished with tools like accessiBe , a subscription service . ADA-compliant websites allow visitors with motor , hearing , and vision impairments ; epilepsy ; and cognitive disorders to comfortably experience the site . Your website must grant equal access to all visitors .
WHAT IF I ALREADY HAVE LIABILITY COVERAGE ? WILL IT PROTECT MY BUSINESS AGAINST EMPLOYEE OR CUSTOMER CLAIMS ?
In a word , no . EPLI and third-party EPLI coverages are often excluded from commercial General Liability policies that protect organizations against liability claims for bodily injury and property damage . So talk to your insurance advisor about adding it to your risk management program . EPLI policies offer financial protection against employees ’ alleged employment practices wrongdoing . This can include harassment , negligent hiring , wrongful dismissal , and more . Third-party EPLI coverage applies to discrimination and harassment claims from those outside of your organization .
The bottom line for employers : Be aware . Be mindful . Be proactive . Your business could be exposed to claims and lawsuits such as digital ADA noncompliance .
Talk to your people about how they play a vital role in assuring that customer complaints are resolved in a professional manner . And visit with your insurance advisor to review your liability policies so you have a financial safety net in place should a claim or suit arise . +
Ask The Questions
• Do you have third-party EPLI coverage in place to protect your business in case of discrimination or harassment claims by customers or vendors ?
• Is your business website compliant with the ADA Standards for Accessible Design ?
• Do you have training and HR policies in place to guide employees on how they should interact in a fair , thoughtful way with customers , vendors , and each other ?
Matt Jones is the Vice President of Sales at Deeley Insurance Group , and a third-generation agent , following in the footsteps of his father and grandfather . He lives in Salisbury with wife Kelly , two sons and two daughters . 410.213.5628 • mjones @ deeleyinsurance . com
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