Protecting Your Business and Employees from Workplace
Discrimination
In 2007, the Equal Employment Opportunity Commission (EEOC)
received 82,792 charges alleging discrimination and/or harassment related
to employment.1 For each charge, a
business much like yours faced legal proceedings, as well as possible loss
of productivity and business reputation.
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Examples:
A
former employee alleges discrimination and firing due to religious
conviction.
Cost: $30,000 in damages
and $60,000 in defense costs.
A
former employee alleges sexual harassment by manager.
Cost: $42,500 in damages
and $91,500 in defense costs.
An
employee alleges sexual discrimination.
Cost: $2,500 in damages
and $26,000 in defense costs. |
It is not uncommon for defense costs to reach $100,000 in
these types of claims even when there is no actual liability on the part
of the business. Most liability policies, however, exclude coverage for
liability due to employment related practices such as:
Refusal
to hire.
Termination of employment.
Employment practices such as coercion, demotion, evaluation, reassignment,
dismissal, harassment, humiliation, or discrimination.
An Employment Related Practices Liability (ERPL) policy
from Federated Insurance can fill this gap. Federated also provides
risk management assistance to their ERPL policyholders to prevent losses
before they happen. This includes access to web-based training for
employees and supervisors, training bulletins, HR assessments, workplace
scenarios, and more.
Need to talk to someone? As a Federated ERPL policyholder,
the “Best Practices Risk Management” line provides easy access to a risk
consultant by a toll-free number. All telephone consultants are attorneys
and full-time employees of AGOSNET®, a national research and development
firm focused on preventing loss and litigation from workplace wrongdoing.
Contact your Federated Marketing Representative for more
information.
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1 Figures
represent the total number of charge receipts filed and resolved under all
statutes enforced by the EEOC (Title VII, ADA, ADEA, and EPA). Source:
www.eeoc.gov/stats/charges.html
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