Employment Practices Liability Cases
against employers are on the rise. It is estimated
that three out of five firms will be sued by an employee.
Companies are finding that they are vulnerable from the pre-hiring
process through the exit interview, even if the employee was
never hired, or only at the company a matter of days.
It can happen to ANY firm. We have all experienced
it. It could be a joke told in the break room, an employee
you had to fire, a “friendly” programmer, or that
person you chose not to hire. Every employer faces the reality
that it will be the target of legal action from past, present
and prospective employees. Even if the claim is groundless
or fraudulent, the defense of a suit can be expensive in time,
resources and financially.
Welcome to reality. Just because you might
not have told the off-color joke to the new employee on her
first day, your Independent Contractor, or client, might not
think the same way. It's still your firm that gets sued, and
you can't always monitor every hire, termination, or conversation
that takes place in your office. Nor can you always know who
will sue, and you can't always prevent a disgruntled employee
from lying or exaggerating just to “get even”
with your firm.
The tremendous increase in employment-related litigation
during the past several years makes Employment Practices Liability
Insurance an essential coverage. Claims for wrongful termination,
discrimination and sexual harassment continue to be a serious
concern for the technology community. Judgments, settlements,
and defense costs for employment-related litigation continue
to rise at an astonishing pace.
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