January 21, 2019
Sean Mulhern

5 Things You Need to Know About Employment Practices Liability

In today’s tense political climate, the risk for potential exposures and damages is greater than ever.

For better or for worse, the United States is in the midst of a uniquely volatile and vulnerable political and social climate.

If you are a construction executive, this means that your bottom line is at risk. Now, more than ever, it is absolutely crucial for all construction practices to have comprehensive management and employment practices liability (EPL) coverage in place.

The fact is that due to a volatile mess of complicated regulatory frameworks and legal liability that construction executives must abide by, even a thorough risk management strategy alone isn’t going to be enough to protect your business.

However, EPL is not just for the construction industry.

The big takeaway is that in today’s tense political climate, the risk for potential exposures and damages is greater than ever. This is particularly true in the case of small business or startups, who often underestimate the risks and end up paying back big time.

Here are 5 reasons that it is a good idea for all types of employers to have a good EPL in place and working for them:

1. Sexual Harassment/#Metoo Impliciations

In the past couple years, the #MeToo movement has resulted in a dramatic increase of sexual harassment charges leveled in various  industries.

If a sexual harassment claim comes up and a claimant is backed by fellow employees, you could be potentially exposed to damages stretching close to the millions.  This means that without proper EPL coverage in place, your bottom line is severely compromised.

The implications of the #MeToo movement stretch well beyond the range of the healthcare industry. In today’s tense political climate, it is absolutely a must to have proper coverage in place.

2. Whistleblower Retaliation

Recent years have seen big changes in terms of the dynamics of whistleblowing policy, and every employer should prepare themselves for unintended consequences. Even if you emphasize anti-retaliation provisions and policies, employers need to always be prepared in case they are accused of retaliating against an employee who is a whistleblower.

Settlement costs could potentially reach close to 1 million in the event that whistleblower retaliation is reported externally.

3. Regulatory Frameworks

Construction companies in particular fall under the domain of a wide and complex net of regulatory bodies and statues.

Good EPL insurance is absolutely crucial to protect against serious exposure to a lawsuit in the event of accidental noncompliance.

4. Bankruptcy

In the event of a bankruptcy, executives are vulnerable to being sued by investors on multiple fronts, including misrepresentation and breach of fiduciary duties.

EPL insurance will cover you and your business in the event of bankruptcy so you can walk away free and clear.

5. Credentialing

In the event an employee is hired on false, misleading or absent credentials, and then subsequently fired, they have recourse to sue, putting the company at risk for at least half a million.

Want to understand more about EPL and  how it can keep you protected?

Reach out to me at sean@thebusinessprotectionteam.com. I offer access to all the right carriers and, more importantly, have the expertise and experience to guide you through each product so we can make your EPL insurance policy work for your bottom line.

- Sean

Sean Mulhern
Commercial Insurance Broker