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Unless you
have been living in a foreign country for the last 10 years, you
have undoubtedly heard, read, and maybe even experienced the trauma
of Employment Practices Liability (EPL). According to many legal
scholars, this is the next major shift in wealth by litigation:
employee lawsuits, to be decided by jury trial, about whether
one or more Federal Laws were violated, and/or whether some form
of personal injury Tort Liability was inflicted by the Employer
on the second party Employee, their immediate Family Member, or
to a Third Party such as a customer or client!**
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EPL exposures
from Federal Laws include violations of the following Acts:
| I. |
Civil
Rights Act of 1964 (Title 7)
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| II. |
Age Discrimination
in Employment Act of 1967
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| III. |
Omnibus
Reconciliation Act of 1985 (include COBRA)
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| IV. |
Immigration
Reform & Control Act
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| V. |
Americans
with Disabilities Act of 1990
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| VI. |
Civil
Rights Amendment of 1991 (definition of discrimination now
includes sexual, gender, age, race, and religious preference,
for employers with 15 or more employees)
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| VII. |
Family
Medical Leave Act of 1993 |
Together,
these Federal Acts, written in ambiguous language to encourage
litigation, and Tort Liability exposures for wrongful termination,
failure to promote, even opportunity denial, have created a very
dangerous environment with which to operate even a simple business.
When you talk
with an Associated Insurance Service counselor, we will explore
the options you have in dealing with these exposures: self-insurance,
insurance transfer, or even a non-insurance transfer such as a
Professional Employee Organization (PEO). Once an analysis is
completed, we will select the option that is best for you and
your organization.
If an insurance
transfer is appropriate, we will investigate the dozens of insurance
companies that underwrite this exposure. Unlike standard property
or casualty insurance, EPL coverage is unique from each and every
insurance company. For example, some cover punitive damages while
others do not. One insurance form may include legal expenses within
the limit of insurance while the next form may provide extra insurance
for defense. Other areas of the insurance contract that need comparison
include: definition of those considered insureds; amount of deductibles
and coinsurance payments; financial stability/ability of the underwriting
insurer to pay claims; definition of injured party.
**For more
statistical information, log onto www.eeoc.gov
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13101 Magisterial Drive, Suite 200