What Happens If One Of My Employees Is Sexually Harassed In The Workplace?

It's one of the worst pieces of news you ever want to hear; an employee is alleging sexual harassment at your workplace. Sexual harassment claims are a severe blow to any company.

Even the mention of the suit is enough to crush your company culture, seed discord throughout the ranks, and divide employees against each other. Some corporations have made complete changes to their boards because of harassment allegations. Furthermore, there is the chance of a lawsuit or claim being filed against your company.

Steps You Can Take To Mitigate The Effect Of Sexual Harassment Claims Against Your Company
A crucial step to protecting your company is to take proactive steps to prevent sexual harassment. Here are steps you can take to protect your company.

• Create a robust sexual harassment policy for your company. You aren't inventing the wheel here, there is a myriad of resources on the internet to help you craft a strategy.  You might even consider forming an employee committee to help you.
• Once you have your sexual harassment policy established, create a booklet of information and a page on the website for the info. Harassment is a sensitive area, and you shouldn't let it get buried in your company's procedures manual.
• Beginning training employees in the policy from the beginning of your onboarding program. Also, schedule regular reviews throughout the year, so people are kept aware of the policy.
• Also, consider purchasing an Employment Practices Liability Insurance (EPLI) policy.  This type of business insurance policy was explicitly designed to protect you against claims of unfair practices at your company, including sexual harassment.

What does EPLI cover?
EPLI will cover those parts of your liability not covered by your standard business insurance policies. Specifically, it covers your liability in any interactions between employees at your company. Besides protection against sexual harassment claims, it also includes:

• Wrongful termination
• Unfair promotion policies
• Discrimination
• Negligent supervision
• Retaliation

EPLI does not replace your general liability business insurance. It is an additional policy covering your procedures at work. Your general liability policy does provide coverage for more blatant forms of harassment, such as a physical assault resulting in injuries.

You Have To Defend Yourself Against Sexual Harassment Claims
Protecting yourself against sexual harassment claims is expensive, but losing a case in court can cost you even more. According to this news article, a woman in California sued her employer, a hospital, and won a 168 million dollars. These judgments could be covered under an EPLI policy.

Some companies, hoping to lower the legal expenses, often try to settle claims before going to arbitration or court. This move is not a viable long-term strategy because, first, the employee might reject a settlement, forcing you into court.

Second, continuous settlements cost money because you will still need legal representation. Additionally, a string of settlements gives the impression there may be a problem at your company, and you're forced into non-judicial, confidential agreements.

Culture Insurance helps companies with establishing a solid line of defense against harassment claims. We do this by assisting in the creation of good internal policies and providing the right types of business insurance with the correct amount of coverage. We encourage you to contact us if you are in the process of reviewing your sexual harassment protocol or considering a change in your business insurance coverage.