New Employment Laws, Politics May Increase Workplace Charges
Your Customers Should Know About the Risks, Options for Affordable EPL Coverage

March 25, 2009

As the U.S. economy struggles and a new administration takes over in Washington, employers are facing additional legal hazards that could increase the number and the cost of employment charges and lawsuits.

A CHALLENGING LEGAL CLIMATE

Escalating layoffs and broader worker-protection laws will create a challenging climate for employers, who may pay more to defend against an employment complaint. Damages awarded to workers could soar to even higher levels.

YOUR CUSTOMERS NEED TO KNOW

"Now is the time for insurance professionals to educate their customers about the changes underway and developing trends in the workplace," said Jeff O’Shaughnessy, vice president for HSB’s Portfolio Employment Practices Liability (EPL) program, which is added to the small business policies of other insurance companies.

HSB PROTECTS SMALL BUSINESSES

HSB’s coverage is designed and priced for businesses with up to 50 employees. It covers employee claims of discrimination, sexual harassment, and other charges, with optional coverage for claims by customers, vendors, and other third parties.

EMPLOYERS FACE BIG EXPOSURES

Nearly 395,000 claims of unlawful employment practices were filed with the U.S. Equal Employment Opportunity Commission (EEOC) between 2003 and 2007. Employers paid almost $520 million in fines and employee awards.

WASHINGTON GETS TOUGHER

The numbers may rise as new laws and policies are enacted. President Obama supports critical legislation and he will appoint judges who will hear employment cases. Federal agencies responsible for workplace rules are expected to be more aggressive.

EXPANDED WORKERS' RIGHTS

What should employers be concerned about? A big issue is the American’s with Disabilities Act (ADA), amended effective Jan. 1, 2009, to broaden the definition of “disability.” This expands the pool of people who can make a claim.

Click here for information about other bills that could increase the risk of employment charges.

HSB'S PORTFOLIO EPL COVERAGE

Without insurance protection, an employment charge could have significant consequences for any business. HSB’s Portfolio EPL program is easy to add to your company’s small business polices and provides quality coverage at affordable prices.

For more information contact your HSB representative, or call us toll-free at 1-800-HSB-1866.