DIG Insurance & Business Magazine Summer 2018 | Page 25

Y.A.L.E. SCHOOL PEOPLE PROBLEMS People Problems: When Your Greatest Asset Is A Risk, Protect Your Business From Employment-Related Claims Y ou follow the interview process. You make the decision. You pass on candidate A as your new customer service lead and make an offer to candidate B. This person accepts the offer and can start next week. Weight lifted, problem solved. Then the letter comes. The candidate you did not make the offer to filed a discrimination complaint alleging you overlooked her because she is pregnant and due in three months. (Did I mention pregnancy discrimination is one of the four most common employment claims?) Every day you make decisions around hiring, firing, promotion, and compensation that could lead to employment-related claims. These lawsuits can be significantly worse than a simple inconvenience. They can distract you from running the company, erode prod uctivity, destroy morale, and be extremely expensive. • Over 41 percent of employee lawsuits are brought against private companies with fewer than 100 people. COMMON CLAIMS Employment practices liability (EPL) insurance will protect you, but generally only in the following situations (with a few notable exceptions): • Wrongful termination: claims stemming from employees fired for taking leaves of absence under the Family and Medical Leave Act or for reporting wrongdoing (i.e., whistle- blowing) • Harassment: typically sexual harassment, but also bullying and other forms of violence • Emotional distress: employees who feel your business fosters a hostile work environment or one that causes stress EMPLOYMENT CLAIMS BY THE NUMBERS • • Breach of contract: violation of the terms of an employment contract • Discrimination: claims stemming from age, race, gender, disability, or national origin • • Advisen issued a white paper outlining defense costs in employment-related claims, which top out at about $300,000. According to the same white paper, the average timeline of resolution for these claims can be between one-and-a-half and two years. In the last twenty years, employee lawsuits have increased about 400 percent. WHO’S ON YOUR SIDE? Of course, the EPL insurance policy provides resources in the event of a settlement. However, the right plan can provide you with even more. Many plans include access to legal resources to help you navigate situations before they occur. They may also provide ideas on how to prevent these claims in the first place with good human resource practices and risk management. Some plans help their employers by providing access to discounted background checks, MVRs, and drug testing. No business owner wants to think about an employee suing them. Nonetheless, if it does occur, having access to the right insurance policy and advice is key. For a complete overview of your EPL policy or to start the process of obtaining one, please contact me today at 410-213-5578 or mmuller@ deeleyinsurance.com. + BY: MEGAN MULLER, CIC CLIENT ADVISOR Megan Muller joined Deeley Insurance Group in 2014 as a Client Advisor. Megan specializes in condominiums, human services and non-profits. She brings many years of sales experience and successful small business ownership skills. She is the chair of the Student Improvement Advisory Committee (SIAC) for Showell Elementary School. Megan lives in Bishopville, MD with her husband and two children and enjoys spending time outdoors. 410-213-5578 • [email protected] 25