New York State Workplace Harassment Laws: Employment Practices Liability Considerations
Compliant New York state and New York City employers, including Rose & Kiernan, Inc., are just wrapping up required sexual harassment training… or at least you should, since the deadline was October 9, 2019! Overall, these new bills and a related amendment passed by the state lower the standard of review for sexual harassment cases, and, according to Jackson Lewis, an employment law firm, also put employers at a greater risk for potential liability. Such steps toward stronger, more aggressive regulations mean the increased need for Employment Practices Liability Insurance (EPLI).
The Insurance Information Institute, Inc. (III) says that “EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.” It provides protection for employers against a lot of employee lawsuits including (but not limited to) break of employment contract, discrimination, wrongful termination and… sexual harassment.
EPLI insurance – costs, what’s covered and what’s not covered
The cost of EPLI coverage varies based on the type of business, number of employees and other risk factors including whether or not your business has been sued for employment violations in the past. EPLI insurance policies will reimburse your company against the costs of defending a covered claim in court and for judgments and settlementsand the policy covers legal costs, whether you win or lose. EPLI coverage does not pay for any civil or criminal fines or punitive damage. It does not cover liabilities covered by other insurance policies such as workers compensation.
EPLI coverage is not required, but it is definitely a smart move for businesses. As a business owner, you may think that you play by the rules, so it is not necessary, however, it is always better to be safe. A lawsuit can cost your business a lot of money, and your reputation as a business may be tarnished afterward, no matter if you win or lose the case. This could result in further losses.
R&K has access to many markets for employment practices liability insurance (EPLI) which can provide defense and indemnity in these matters. Contact us here or by calling (800) 242-4433. We’re happy to help!