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.
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:
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.