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Employment practice liability insurance can help fight a discrimination charge

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Facing a discrimination lawsuit may be tough for a business, especially a tight-knit group that has a focus on maintaining morale and company image.

Making sure a company has an employment practice liability insurance plan is important in the event of certain lawsuits, said Mindy Chapman, attorney and president of Mindy Chapman and Associates, in an article for Business Management Daily.

Chapman said EPLI coverage can help save a company money with employment related claims; however, facing discrimination claims is something businesses want to avoid, so Chapman advised businesses to institute training programs to educate workers about what constitutes discrimination, in an effort to prevent issues from arising.

Another recommendation by Chapman is to make sure an employee practice liability insurance policy has the capability to cover claims from the Equal Employment Opportunity Commission and other federal, state and local agencies. She pointed to a recent case involving a restaurant chain, which faced a discrimination suit brought by the EEOC on behalf of some of the chain's employees. Because the restaurant's EPLI policy only covered lawsuits brought by employees and not agencies like the EEOC, the company was left footing its legal bills. Chapman stressed it is important to shop around for appropriate coverage and read policy documents carefully.

Sexual harassment claims can also cost a business a great deal of money, according to the Tyler Morning Telegraph, a provider of news for the East Texas area.

A number of Tyler lawyers told the news source that workplace sexual harassment allegations are not easy to prove, and can be very costly to litigate. The news source pointed to EEOC statistics that showed men are increasingly bringing sexual harassment claims, with the percentage of total claims filed by men increasing from 14.9 percent in 2002 to 16.4 percent in 2010.

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