How to protect your business against employment practices liability claims.

How can a family-owned business become fertile ground for an age-discrimination lawsuit? When do jokes make a workplace hostile?

These are just a few of the issues that employers of all sizes face in today’s litigious environment. Your employees might feel like family (and sometimes they are in fact), but it is important to protect your business with coverage for harassment, discrimination, or humiliation. Even if you run a sound and ethical business, you can face thousands of dollars in legal fees to defend yourself against an allegation, and truly, it can happen to anyone.

What is EPLI?

Employment Practices Liability Insurance (EPLI) insures your business against employment practices liability claims. EPLI coverage can be added as endorsement to your business owners policy and covers damages that result from wrongful employment or third-party practices, subject to the policy limit and terms.

EPLI covers claims resulting from employment practices such as:

• Wrongful refusal to employ a qualified applicant

• Wrongful failure to promote; wrongful deprivation of career opportunity; or employment related misrepresentation

• Wrongful demotion, evaluation, reassignment, or discipline

• Wrongful termination, including retaliatory or constructive discharge

• Unlawful work-related harassment, coercion, discrimination, or humiliation as a consequence of race, color, creed, national origin, marital status, medical condition, gender, age, physical appearance, physical and/or mental impairments, pregnancy, sexual orientation or sexual preference, or any other protected class or characteristic established by any applicable federal, state, or local statute

• Slander, defamation, or libel through oral or written publication, or violation or invasion of a right of privacy

EPLI not only covers employment practices, but also covers claims resulting from third-party practices, such as a contractor or repairman hired to perform maintenance on your business, or a customer.

Who can bring a claim against you?

Did you know that businesses are three times more likely to be sued by an employee than experience a fire? At the heart of your business are your customers, employees, and those contracted to work for you. The EPLI policy pays to defend your business and for damages that result from a claim made by or on behalf of a:

• Current employee
• Former employee
• Leased worker
• Temporary worker
• Applicant seeking employment
• Third party (clients and customers of yours or independent contractors)
• Officer who is not an owner or partner

While a fire or natural disaster may seem more physically devastating, EPLI claims could also take a toll on your business. No matter where you have been employed in the past, you have probably encountered many workplace issues over the years. If you come across a situation you are unsure how to handle the employment challenge, contact your human resources, EPLI provider, or legal counsel for guidance. Consulting on a situation prior to action could save your business time and money, and keep your reputation intact. 

Coverage to fit your needs

More than coverage and protection from loss, insurance provides peace of mind. As a jeweler, you know your business faces unique risks that an average business may not. An experienced agent can be an incredible source of information, advice, and personalized service in providing protection against employee-related liabilities. Seek out the advice of a licensed insurance agent or broker who specializes in jewelry operations.

Value-added resources focus on prevention

While insurance can help protect your business’s financial position, Jewelers Mutual Insurance Company also wants to help you prevent potentially difficult situations with your staff. Through Jewelers Mutual’s EPLI program, you will receive free access to:

• WorkplaceRiskSolutions.com, an online resource that offers up-to-date information, education, loss prevention and management training on best employment practices. The online resource offers sample policies, a model employee handbook, and other ready-to-use resources. This web site is administered by The McCalmon Group, an authority in employment practices.

• Legal telephone hotline by Jackson Lewis LLP, a nationally recognized law firm specializing in employment law.* Employment law attorneys staff the telephone hotline to answer questions about employment law and best employment practices.

To learn more about insurance coverage for your jewelry business, visit JewelersMutual.com or call 1-800-558-6411 to find an experienced agent in your area.

*The EPLI hotline offered by Jewelers Mutual is not intended to service claims.