As a business owner, you’re probably familiar with employment laws that ban you from discriminating against both job candidates and employees based on gender, race, ethnicity, age, religion or disability. Even so, your workplace may be fostering such hostility without your knowledge. For instance, an employee may find it difficult to report a problem if he or she is being harassed by a manager.
If a similar instance is taken to court, it could rock the financial ground that your business stands on. Employment lawsuits are some of the most expensive disputes, costing an average of $160,000 just for litigation, plus any settlement and judgment costs on top of that. Employees may try to sue for back pay and other damages, which results in an average of $2.7 million in punitive damages awarded for employment cases.
Because managers spend about 30 to 40 percent of their time handling workplace conflict, it’s absolutely vital that you familiarize them with federal and state employment laws. For even more protection, talk to your independent insurance agent about employment practices liability insurance.
This valuable coverage can protect your business’ finances in the event that an employment lawsuit is filed against your company. Perhaps an employee feels as though he/she was passed up for a promotion due to discriminatory reasons. Or perhaps you’re unaware of a discriminatory issue arising between two employees until it reaches a level of harassment that can no longer go unnoticed. Whatever the case, employment practices liability insurance can reimburse your business for associated legal expenses.
Your agent can explain this coverage in further detail and help you determine just how this coverage can protect your business from its unique risks. Call today for additional information.
Learn more today. Call Mitchell & Mitchell Insurance Agency at (415) 883-2525 for more information on Los Angeles business insurance.