What would you do if you were sued by an employee for discrimination, wrongful termination, or sexual harassment?  As soon as you hire even one employee you take on the risk of being held liable in an employment practices lawsuit.  These cases are becoming more prevalent in the U.S. and they stare down many different kinds of employers.  An estimated 3 out of every 5 businesses will be sued by one of their own employees, whether or not that employer is actually at fault.  An employer can be held liable for an employee’s action toward a third party, even when the employer has done nothing wrong.  Further, over 60% of employers that have fired an employee have faced a wrongful termination lawsuit.

 Obviously, this type of suit can happen anywhere, but statistics show that it’s more likely to happen to a small employer’s office than a large corporation.  You need an insurance policy to protect your medical practice against Employment Practices Claims.  Your Medical Professional Liability Insurance will not cover these claims.

 What Does the Policy Cover?

Employment Practices Liability Insurance (EPLI) covers claims made by employees or former employees for age, race, disability, or sex discrimination.  The liability limits for an EPLI policy vary but typically start at $500,000.  EPLI also includes coverage for other allegations such as sexual harassment, wrongful termination, third-party discrimination or harassment, and violations of the Fair Labor Standards Act (FLSA).  The policy covers defense costs as well as the loss.  This is important coverage because the average cost to defend an EPL claim is $150,000.

 You could be at risk even if you haven’t violated any laws.  Many of the EPL claims are made by disgruntled former employees who want to get back at their employers for one reason or another.  Even if the claim has no merit, the costs of time and money to defend against it add up quickly. 

The Keane Insurance Group offers Employment Practices Liability Insurance for medical practices at reasonable rates.  Contact your Keane representative to get a free quote.

 You may also want to consider additional coverage for Cyber Liability,Data Breaches,  HIPAA Violations, RAC Audits, and Loss of Data through our Medical Defense Policy.  We can provide coverage for your office contents, General Liability, and Worker’s Comp through Business Office Package Policy (BOP).  Let us know how we can be of service to you!