Risk & Business Magazine JGS Insurance Magazine Fall 2019 - Page 31

LIABILITY INSURANCE BY: MEAGHAN TYNDALE-WILLIAMS, CLCS VICE PRESIDENT, JGS INSURANCE Meaghan Tyndale-Williams began her insurance career with Liberty Mutual in Commercial Lines as a Direct Sales Property & Casualty Producer. She won numerous sales contests and awards while at Liberty Mutual including 2008 Producer of the Year, Millionaires Club and Liberty Top Producer Club. In 2014, after having her first of two children, she transitioned to JGS Insurance to be closer to home and began her current position as Vice President. additional premium, third-party coverage can protect an organization from outside vendors, customers, or other individual claims. For example, a delivery driver routinely is sexually harassed by a business’s employee. If the driver were to file a harassment lawsuit against the organization, an EPLI policy which includes third-party coverage would respond. In today’s highly litigious environment, coupled with increased courage by employees in outing and confronting discrimination, harassment, and other inappropriate acts, businesses are exposed more than ever to a claim. Ensuring your employment practices liability insurance policy will meet the exposures of today’s world has never been more important. LIMITS AVAILABLE Employment practices liability coverage can often be provided as an endorsement to a business owner’s policy. However, it is a best practice to have a stand-alone policy which may provide broader coverage and not be affected by an underlying policy. Most stand-alone policies begin with a $1 million limit and increase from there. The limit of insurance typically includes costs associated with settlements, judgments, and legal defense costs. Claims related to wage and hour (FLSA), third-party, and other exposures typically have a lower sublimit associated with them. It is important to note limits may be reduced or their availability shortened during times of mass staff reductions, mergers, or acquisitions. COST OF COVERAGE The cost of obtaining an employment practices liability policy is dependent on many factors including the following: • • • • • Not having an EPLI policy in place not only exposes an organization to the obvious costs associated with a claim, including defense and damages, but also the nonquantifiable costs. When an organization becomes entangled in an employment dispute, morale can decline, negatively impacting productivity. And in more extreme scenarios where claims are made public, a business’s reputation could be at risk. The costs associated with not carrying employment practices liability insurance outweigh whatever premium your chosen insurance company wishes to charge. If you have employees, you need EPLI. Hiring and Firing Procedures Management’s Experience Number of Employees Prior Claims History Type of Business Most policies also include a deductible, which is an amount that must be paid by the insured before a policy will respond to a claim. 31