Building The Corporate Firewall
All too often, there is a direct correlation between business conditions and employee litigation.
Just as management may be downsizing to reduce overhead and keep the company competitive, terminated employees–no matter how honorably they may have been treated–often file claims and initiate lawsuits for everything from sexual harassment to age and racial discrimination.
To make matters worse, defending even baseless suits can cost companies tens or hundreds of thousands of dollars. In other words, the downsizing can backfire on you. It’s a blind spot that may take you by surprise.
What you might not know is that there is a way to defend again this blind spot and virtual time bomb. Some companies can purchase an Employment Practices Liability Policy (EPL) for less than $3,000 annually. This is a highly cost-efficient way to reduce risk. Rates are as low as $3,000 per year for business with up to 100 employees. The EPL Policy includes employee litigation, age/race discrimination, third party discrimination, sexual harassment and wrongful termination. This provides for the funds for legal fees and – if the company is found to be in the wrong – can cover settlement costs as well.
Do you have a firewall around this potential liability? It could be the ounce of prevention your business needs in this recession and beyond.
