Can you handle an employee liability claim?

It takes only one employee complaint or lawsuit to wreak havoc on a company of any size. The financial consequences, include legal fees, depositions and settlements; and other repercussions include bad publicity for the company, negative impact on employees and clients as well.

The Equal Employment Opportunity Commission received 82,792 complaints and charges in 2007 and reports that $290.6 million in monetary benefits were paid. This does not include monetary benefits obtained through private litigation.

Companies that arm themselves with well-designed policies and procedures for hiring, firing and promotion, and provide training for all supervisory personnel, will find themselves in a better position to eliminate or defend such claims. An Employment Practices Liability Insurance policy also should be a part of any company’s risk management program.

However, not all EPLI policies are alike. How the policy defines a claim, coverage for punitive damages, and the definition of “who is an insured” are just a few of the areas that require careful examination.

For more information on the EPLI policies available to you through GlassInsure, NGA’s sponsored insurance program, call the program administrator at 800/640-7601.