insurance update
How # MeToo Could Affect
YOU by Kyle Wallace
We ’ ve all been witness to the incredible events surrounding the # MeToo movement . The allegations of sexual harassment ( and worse ) made against Harvey Weinstein led to accusations of wrongdoing against a string of powerful men by their subordinate coworkers . This , in turn , led to very public scrutiny . True or not , these allegations are costly . It stands to reason that the highprofile events involving actors , entertainment moguls , anchormen and politicians will create a trickle-down of this type of scrutiny and the potential for allegations in all workplace relationships . This is particularly true in a doctor ’ s office where there are typically differences in pay , education , gender and age between the doctors and support staff .
Over the past 20 years , we ’ ve never had a client who was accused of sexual harassment admit that the allegations were true . Still , in every case , lawyers were engaged . The average defense cost for this type of case is in the neighborhood of $ 40,000 ( and that ’ s if you win ). If a dentist doesn ’ t have insurance coverage for this , the likelihood is that the desire to defend will be replaced by just finding the easiest way out . That usually involves writing a check to the person making the allegation .
Employment Practices Liability Insurance ( EPLI ) is the only type of insurance you can carry that will address this type of allegation . You likely don ’ t have it or at least not enough of it . EPLI coverage is designed to defend and indemnify the practice with regard to allegations made by an employee , former employee or job applicant . Around ten years ago , insurance companies that insure dental offices began to include a small amount of EPLI coverage on the office policy , maybe $ 10,000 or so . That amount can generally be increased but with that increase comes a much higher deductible . Still , the dentist who owns an office should at the very least increase the coverage to something more substantial . It ’ s not only practice owners who should be concerned . Associate dentists should make sure that the practices they work for carry EPLI as well .
EPLI coverage has been available on its own stand-alone policy for many years now . In fact , originally , that was the only way to buy it . Any dental practice owner who wants the very best protection should consider purchasing a specific
EPLI policy . A dedicated EPLI policy will offer higher coverage limits , lower deductibles , and broader coverage than the endorsement to the office policy .
Sexual harassment is certainly the most jarring allegation addressed by the EPLI policy but it ’ s only one of many situations that the coverage can be designed to address . The common allegations covered by EPLI are related to sexual harassment , discrimination , and wrongful termination . Allegations of discrimination and wrongful termination can be just as costly to defend as those regarding sexual harassment . Generally , you ’ ll find coverage for all three on both the stand-alone EPLI policy and the endorsed coverage on an office policy . Within the dental community , there are two additional risk situations not addressed by the basic EPLI coverage . The first is an allegation of sexual molestation made by a patient of the practice . A patient is not an employee , former employee or job applicant so , therefore , the allegation is not covered by basic EPLI coverage . Many stand-alone EPLI policies will specifically include defense coverage for molestation allegations made by a patient .
16 NORTH TEXAS DENTISTRY | www . northtexasdentistry . com