You’re NOT COVERED for this type of claim unless………………
We are currently observing that most of the time when an injured worker ends up hiring an attorney in a work related injury claim, our client also ends up facing a separate lawsuit regarding his employment practices. In that scenario, you will need to hire a separate attorney (worker’s comp doesn’t cover this) and will be questioned on a whole host of your employment practices like:
1. How frequently do you do safety meetings….are they logged.
2. What and when was training provided.
3. All time-cards, payroll records (showing overtime) will be requested.
4. A copy of the your employee manual and safety manual.
So how can you be protected in this scenario?
The answer is EPLI coverage. Employment Practices Liability Insurance (EPLI) is crucial for contractors to protect their companies for several reasons:
Coverage for Employment-Related Claims: EPLI provides coverage for claims related to wrongful employment practices, such as discrimination, harassment, wrongful termination, and retaliation. Contractors, like any other business, can face these types of claims from employees, former employees, or even job applicants. Most lawsuits we’ve observed will subpoena all records related to safety manuals, records of safety meetings, published records regarding vacation, overtime etc. unfortunately, these are often fishing expeditions, but our client is burdened with hiring legal counsel to defend themselves.
Legal Defense Costs: Defending against employment-related claims can be costly, even if the contractor is not found liable. EPLI coverage helps cover legal defense costs, including attorney fees, court costs, and settlements or judgments if the contractor is found liable.
Protection Against Financial Loss: Without EPLI coverage, contractors may have to pay for legal defense and settlements or judgments out of pocket, which can significantly impact their finances and potentially jeopardize the viability of their business.
Risk Management and Prevention: Many EPLI policies offer risk management resources and support to help contractors prevent employment-related claims. This can include employee training programs, policy reviews, and access to legal advice to ensure compliance with employment laws and regulations.
The last thing we want to do is try to overload you with insurance, but we do feel a responsibility to make you aware of the trends that are crossing our desks as we navigate worker’s comp claims. If you have questions, just hit reply and we’ll be happy to help.
