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Can You Get Sexual Harassment Insurance?

Can You Get Sexual Harassment Insurance?

It is one of the hottest issues of this news cycle: inappropriate sexual behavior in the workplace. Sports stars, journalists, pastors, actors, directors, producers, government officials and more are being accused on a daily basis of sexual harassment and/or sexual misconduct. The question is, can you get sexual harassment insurance to protect your business from these claims? The answer is yes. It’s Called EPLI Employment Practices Liability Insurance (EPLI) is the type of coverage that protects employers who may find themselves in the midst of sexual harassment allegations, among other things. This coverage is typically purchased as either a stand-alone policy or included with general liability or directors & officers liability packages. EPLI policies can be written to cover a number of potential problem areas including sexual harassment, sexual discrimination, mental anguish, wrongful termination, negligence, whistleblower retaliation and more. It’s Pre-Paid Legal When you read about workplace sexual harassment claims, the legal settlements usually aren’t that large, with many settlements under $100,000. In fact, the Equal Employment Opportunity Commission reports that in Fiscal Year 2016 there were 9,566 claims settled without litigation, resulting in $40,700,000 in claims payments. That’s an average claim payment of just $4,254.65. What that figure doesn’t take into account are those claims that were litigated. Legal fees can dramatically increase the cost of a sexual harassment claim, as well as increase the amount of time involved in fighting a suit. Litigated claims can often also increase the amount of settlement beyond $100,000, in addition to those legal fees. EPLI insurers offer legal representation to their policyholders, in addition to indemnity payouts for settlements or judgments....