Why you need Employment Practice Liability Insurance

On Behalf of | Nov 1, 2022 | Premises Liability Defense |

An accusation of workplace discrimination can compromise your company’s reputation or cost you significant legal fees. New York’s strict anti-discrimination laws are partially responsible for a rise in employee lawsuits.

Having Employment Practices Liability Insurance will not prevent you from being the target of a discrimination complaint, but it will help ensure your business survives.

What constitutes workplace discrimination?

Workplace discrimination involves employers mistreating employees who are members of a  protected class. Bias can focus on age, gender identity, disability, race, religion, pregnancy status and other criteria.

What does EPLI cover?

Business owners who opt for EPLI know it is unnecessary to be guilty of wrongdoing to face a lawsuit. However, regardless of guilt or innocence, discrimination charges require a defense that can be financially ruinous. EPLI covers employers’ defense costs, judgments and settlements irrespective of a  lawsuit’s outcome. However, it is essential to remember that insurance may not cover punitive damages when applicable.

Why is EPLI helpful for New York businesses?

New York workplace discrimination laws favor employees. For example, an employee can file a discrimination claim in response to any workplace offense, whether minor or significant. In addition, it is unnecessary to demonstrate an employer’s more favorable treatment of another employee with a similar circumstance. The employee is also under no obligation to approach the employer to resolve the matter. These are the conditions contributing to more workplace discrimination claims in recent years.

As a New York business owner, you must familiarize yourself with labor laws and other practices that protect your employees. Unfortunately, following the rules does not guarantee that you will not face discrimination charges at some point.