As we continue to navigate the COVID-19 pandemic, the lumber industry has had to work through a number of challenges. 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, wood 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 practices brokers can recommend to their clients to mitigate EPL risks. One of the best ways their clients can protect their businesses 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. Brokers can recommend an EPLI policy to their clients as a proactive means of preparing for this risk. 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 your clients can use to minimize the chance of harassment, wrongful termination and discrimination claims. The EmployerProtection.net is regularly updated to provide 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, we offer a toll-free legal advice line for our EPLI insureds, 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 departments and inhouse counsel resources of their own.
Beyond securing an EPLI policy, there are other steps brokers can recommend to their wood industry clients. The EEOC has a number of resources 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 by reviewing these resources is a critical 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 their business.
As EPL claims loom large as a threat to businesses nationwide, brokers should reach out to their clients now to confirm they are practicing proper risk management. We recommend you check in with your clients to ensure they have an EPLI policy to protect their business, and if they do, recommend they use the resources from the EmployerProtection.net to better assess and deal with their risks. Additionally, they 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.
