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Enduring an EMP or EPL? Neither would be pleasant, but MDIS can prepare you for one
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f you had a choice, would you choose to experience an EMP claim or an EPL claim? Well, normally you don’t have a choice. You typically don’t see these things coming and either you have plans in place to mitigate the associated risks and pitfalls or you don’t. There has never been an EMP—Electromagnetic Pulse—claim and if there was, it probably wouldn’t matter because such an event would render all elec- trical devices useless, among other associated catastrophes. On the other hand there have been claims for EPL—Employment Practices Liability—and those who have experienced that would probably say “an Electromagnetic Pulse couldn’t be any worse!”
Different from an EMP ever occurring, you do have a choice to be prepared for an EPL, and after considering these rather alarming statistics, perhaps you’ll see why protection is so important:
Charges for discrimination, harassment, wrongful termination, retaliation, and wage/hour violation all are on the rise.
The average cost to defend an Employ- ment Practices claim is $150,000.
The average jury award, if a case goes to trial, is $250,000 and 10 percent of all wrongful termination and discrimina- tion awards exceed $1 million.
A small employer is more likely to have an employment claim than one for general liability, property loss or malpractice.
Allegations of sexual misconduct affect one in 10 medical offices.
An employer can be liable for discrimi- nation by its employees towards a non- employee (patient or any third party) even when the employer’s acts them- selves were not discriminatory.
You’ve certainly heard it before that one of the most feasible ways to deal with risk or a potential problem is to transfer that risk to
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someone else, like an insurance company. When it comes to EPL, it is no different. For mere pennies on the dollar, you receive pro- tection through an EPL insurance policy.
Today, most EPL insurance carriers require that you have an employee handbook before they will even think about insuring you. The carrier MDIS has worked with for more than 10 years will actually provide you with an employee handbook as one of their insureds, and there are many other advantages pro- vided by this carrier. One of the best features that you are sure to use is their HR consult- ing online or via phone call, and there is no charge. This is for your benefit and theirs. It is a risk management service, and by making them aware of your situation and potential problem, you will not be penalized. They also maintain an HR News Center that keeps you updated on federal and state employment law changes. You will have access to employ- ment forms that address issues like employ- ment at-will, electronic communication with employees and employee evaluation.
At MDIS we know that you have worked hard to build your practice and understand that it is an important part of your life’s work. That’s why we continue to work to find the best values in insurance to help you protect your business and be prepared when you encounter risks that could be harmful.
Oh, and don’t worry yourself too much about that EMP thing—if there is ever an insurance policy for that, I’ll let you know. f
Call MDIS at 800-944-7550 to learn more about all our products and policies. Contact Lindsey, the MDIS agent who handles Employer Practices Liability policies, at 573- 469-7001 or lindsey@mdis4dds.com.
MDIS EPL POLICY FEATURES Employment practices liability, including third-party discrimination and third-party harassment (available for most classes of business)
$250,000 separate limit for defense costs for allegations of patient molestation offered automatically (available on most accounts; some restrictions may apply)
Fair Labor Standards Act (FLSA) $100,000 sub-limit for defense costs and loss (available to most accounts in most jurisdictions)
Defense and settlement provision (“hammer clause”) softened to cover 75 percent of defense costs and loss after insured’s final refusal to consent to settle a claim
Defense outside the limit if a $500,000 limit or higher is chosen (does not apply to allegations of patient molestation or violations of FLSA)
Full prior acts coverage for claim-free accounts in most states
$50,000 in privacy breach expense, workplace violence, identity theft and kidnapping coverage
Punitive damages with most favorable venue wording included in the definition of loss (available in most jurisdictions)
Supplemental payments for attorney’s fees and other costs, expenses or fees resulting from the investigation or defense of a proceeding before the state licensing board, local medical board or society or governmental regulatory body regarding allegations of patient molestation (available for most classes of business)
Front and back pay included in the definition of loss
Wrongful act definition expanded to include coverage for the negligent violation of the Uniformed Services Employment and Reemployment Rights Act (USERRA)
Independent contractors are included in the definition of employee
Modified severability
Spousal liability extended to domestic partners
Final adjudication wording for fraud exclusion
Defense costs coverage for claims involving the modification of real property.
