As we continue to navigate the COVID-19 pandemic, the lumber industry has worked through a number of critical risks. One of the most frequent claims we’ve seen throughout the pandemic from our insureds has been employment practices liability claims (EPL). Employment practices liability claims include wrongful termination, workplace harassment, retaliation, discrimination and more. With staff changes becoming more frequent and with greater workplace challenges due to the pandemic, businesses have become more susceptible to EPL risks than before.
We’ve seen an increase in claims on discrimination cases and large claims, including claims related to disability, age, gender and wrongful termination. In fact, in 2020, the U.S. Equal Employment Opportunity Commission (EEOC) received 67,448 charges of workplace discrimination. Of these cases, the most frequent claim was retaliation (often combined with other types of charges), which the EEOC explained may be a result of the pandemic, as COVID-19 has made working conditions much more difficult.
There are several steps you can take to mitigate EPL risks. One of the best ways to protect your business against an EPL claim is to secure employment practices liability insurance (EPLI), which is often not included in a business owner’s policy. An EPLI policy covers the legal cost of defending against EPL claims, providing employers with a means to protect their business in the case of a claim. Coverage also includes liability as defined. EPLI provides protection against a number of employee lawsuits, including discrimination, wrongful termination and harassment claims. Unlike our competitors’ forms, The PLM EPL coverage form automatically includes Third Party coverage for claims of discrimination and sexual harassment brought by clients, customers and vendors.
PLM has offered EPLI coverage since 2015, and our plan comes with several added benefits. With a PLM EPLI policy, we also offer our EmployerProtection.net. Here, we provide critical resources for your business which can help minimize claims of harassment, wrongful termination and discrimination. The EmployerProtection.net is regularly updated to provide our insureds with best practices as legal requirements change. In fact, it now includes an entire resource section addressing the pandemic. Other important resources include policy and procedural guideline templates, including an Employee Handbook and even training modules, all to minimize these exposures. Furthermore, for our EPLI insureds, we offer a toll-free legal advice line, specialized claims handing by experienced professionals and access to experienced employment law firms. Use of this Legal Advice Line does not erode the limit for defense and liability. These are important value-added benefits for our small and mid-sized business who lack human resources services and inhouse counsel resources of their own.
Beyond securing an EPLI policy, there are other steps you can take. The EEOC has a number of tools available for small businesses including a resource center, trends and statistics and a summary of the state of EPL claims today. As an employer, becoming more aware of this exposure is important by reviewing these resources is a good first step. Other initiatives, such as establishing firm dispute resolution policies, creating a comprehensive employee handbook and holding zero-tolerance policies for harassment in the workplace, can also go a long way toward protecting your business.
As EPL claims loom large as a threat to businesses nationwide, business owners should take the time now to confirm their businesses are practicing proper risk management. We recommend you review your policies to ensure you have an EPLI policy to protect your business, and if you do, be sure to use the resources from EmployerProtection.net to better assess and deal with your risks. Additionally, you can consult the EEOC for comprehensive data and resources on addressing EPL issues. For more information regarding PLM’s EPLI program, please visit https://www.plmins.com/products-services/coverages/ or reach out to our Customer Service team at 1.800.752.1895 or CustServ@plmins.com.
