employment practices liability insurance westchester ny
  • By Allan M Block Blogging Team
  • Posted August 1, 2019

How Can I Protect My Company Against Lawsuits From Employees?

For business owners, a single lawsuit from an employee can become a major financial burden. With these types of lawsuits becoming more and more prevalent, what can you do to protect your company?

A good place to start is to make sure that your business is compliant with legal requirements surrounding anti-harassment and hiring practices. Here are a few recommendations:

  • Anti-Harassment Training: Many states now require businesses to partake in yearly anti-harassment training. These trainings help to inform employees and supervisors of what constitutes improper behavior, and what their rights are in fighting such conduct. 

  • Take complaints made to Human Resources seriously: If an employee makes an official complaint with HR, the company should make sure that complaint is handled appropriately. This helps to foster an environment where employees feel their concerns are being addressed, and can prevent lawsuits. Without a proper response, employees can point to that mishandled HR complaint as evidence in a lawsuit.

  • Ensure that your company follows appropriate hiring guidelines: Avoid requesting information regarding the prospective hire’s age, pregnancy status, and personal or family medical history, as it is illegal to use this sort of information in hiring decisions.

  • Consider Employment Practices Liability Insurance.

Simply put, Employment Practices Liability Insurance (EPLI) offers employers protection from lawsuits that may be brought against them for claims such as wrongful termination, discrimination, wages, sexual harassment, and more. These policies give businesses a support team that can offer guidance and assistance in handling these claims.

This portion of the commercial insurance market has increased significantly in the last 20 years, but many businesses still do not carry EPLI insurance. Considering how expensive and time-consuming lawsuits can be, this lack of coverage is a risky oversight. In addition to the financial burden, it’s also important to consider the loss of productivity and morale that can occur during legal battles, which often drag on for months (if not years).

Reach out to our agents today at 914-631-4353 to discuss how Employment Practices Liability Insurance can help protect your business.

For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency, https://www.allanblockinsurance.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City.  We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.