By now, we have all seen the profound effects the COVID-19 pandemic has had on individuals and society. Businesses that create livelihoods across the country have shut down or limited hours at their physical locations to support critical social distancing practices. While the majority of wood businesses are deemed essential and still operating to some capacity, the pandemic has brought up broad sweeping concerns about employment practices as a record number of Americans file for unemployment.
It is important that you, as a business owner, consider these issues now. Between staffing and operational changes, your exposures are increasing even if you don’t realize it. These staffing changes raise questions about potential employment practices claims. To defend against employment claims, employment practices liability insurance (EPLI) is an important risk management tool for employers. Here’s what you need to know about EPLI.
PLM offers EPLI to help customers cover the cost of defending against claims by former employees that the employer has violated their employment rights. The average out-of-pocket cost of defending against employment practices liability claims in cases that have resulted in defense costs and settlement payments ranging from $75,000 to $500,000.
EPLI covers legal costs associated with a range of claims, including but not limited to:
• Wrongful termination
• Violations of employment laws like the Family Medical Leave Act
• Discrimination (related to age, race, gender, pregnancy status, etc.)
• Breach of contract
• Inflicting emotional distress
• Sexual harassment
The COVID-19 shutdowns have forced some businesses, including those in the lumber and woodworking industries, to cut back on staff. This may expose businesses to an increased risk of incurring wrongful termination claims. For example, former employees may attempt to argue their termination was not performance-based.
Included with the EPLI policy is access to plmilm.EmployerProtection.net, a valuable website with content including legal requirements, best practices and sample forms and policies. Policyholders also have complimentary access to a legal advice line to get general counsel on employment issues from an experienced attorney. These resources equip you with an HR consultant and legal expert at your fingertips.
If you have any questions on EPLI or are interested in EPLI coverage at your next renewal, please contact us at 1.800.752.1895 or CustServ@plmins.com — we remain available to our insureds throughout the COVID-19 pandemic.
