Employment practices liability claims happen when an employer and employee have a dispute over hiring practices, working conditions or the termination of employment. Claims can be costly to resolve, even when the allegations are baseless.
As an aftermarket business, you may already find it challenging to hire and retain quality employees. However, the thought of facing a lawsuit over who you hire, employ or fire can make these already difficult human resources decisions even harder — especially if you don’t have the right protection.
Employment Practices Liability Insurance (EPLI) is an optional type of coverage that businesses can obtain to protect against their HR risks. The Lockton Affinity Aftermarket Insurance Program offers EPLI coverage that’s designed specifically for aftermarket businesses.
Here’s what to know about the employment practices risks aftermarket businesses face and the protection offered by Lockton Affinity Aftermarket’s EPLI coverage.
EPLI Claim Risks
EPLI is designed to protect businesses from common workplace claims and lawsuits brought by employees.
Due to the nature of the industry, the number of lawsuits in the aftermarket industry is rising and the cost to defend yourself against a claim may end up being substantial.
Making matters even trickier, the laws around fair treatment of employees in the workplace are complex and include numerous statutes such as:
- Title VII of the Civil Rights Act of 1964
- Equal Pay Act of 1963
- Age Discrimination in Employment Act of 1967
- Equal Employment Opportunity Act of 1972
- Immigration Reform and Control Act of 1986
- Americans with Disabilities Act of 1990
Not all EPLI claims result from intentionally improper behavior on the part of the business. Even with the best of intentions, it’s possible to make a mistake that results in a claim.
Workers in the aftermarket industry have won five- to seven-figure settlements for claims of:
- Discrimination based on gender, age and other protected characteristics
- Being passed over for promotion and career advancement opportunities
- Denial of accommodation for pregnancy and other health circumstances
- Hostile work environment due to nicknames, jokes and mistreatment
A claim with drawn-out litigation, a big settlement or significant publicity could do major damage and threaten the future of your business. EPLI is coverage designed to protect against this core risk to your aftermarket business.
EPLI Coverage
EPLI policies are designed to protect against the threat of specific claims that may be brought against a business. These can include:
- Discrimination—Such as claims of discrimination based on age, sex, family status, pregnancy, religion, national origin or disability status brought over hiring, firing or during the course of employment.
- Wrongful termination—Such as claims resulting from an employee being terminated due to layoff, policy violation or performance alleging discrimination based on age, race, religion, disability, pregnancy, hostile work environment, harassment, FMLA violations, or retaliation for pay disputes, whistleblowing, or worker’s compensation claims.
- Sexual harassment—Such as claims of sexual harassment and other hostile workplace behaviors alleging inappropriate comments, questions, requests or physical interactions by supervisors, employees or other third parties.
- Wage and hour law—Such as claims for back wages, bonuses, pay discrepancies, employee misclassifications and denied overtime that may be brought individually or as part of a class action lawsuit over work contracts, job roles, job duties, pay scales and time sheets.
EPLI is designed specifically to cover the costs associated with claims made against your business, including the cost of defending against allegations in court, regardless of whether you win or lose the case, as well as any judgements or settlements that may result.
EPLI for Aftermarket Businesses
With EPLI coverage from Lockton Affinity Aftermarket, your business is protected from the costs associated with employment practices claims should a potential, current or former employee file a claim against your business.
EPLI is available as part of our exclusive, enhanced insurance offerings for aftermarket businesses through the Aftermarket Insurance Program, which also includes Technician Errors and Omissions coverage, Employee Tools coverage and more.
To see what our coverage will look like for your business, request a price indication today.
