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Employer's Liability Insurance

Mary Lynne Blaesser April 2013 issue of Skin Inc. magazine

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Knowing and understanding trends in any industry is important to the success and financial welfare of the business. Unfortunately, a rise in employment-related lawsuits is directly affecting the spa industry. Adding Employment Practices Liability (EPL) coverage to an existing insurance portfolio protects employers from claims alleging harassment, discrimination or wrongful termination.

Employment-related claims are brought forward by current, former or potential employees when they feel their rights have been violated. Since federal and state laws protect the rights of workers, employees who feel that they have been unjustly treated can file a complaint with the Equal Employment Opportunity Commission (EEOC). Once filed, the employee can then proceed to file a lawsuit against the employer.

Every employer can become the target of legal action. Employment-related claims increase in an economy that has high unemployment rates and limited jobs—due to job cuts and large layoffs, such as the nation is currently experiencing. The U.S. EEOC received a record number of workers’ complaints alleging discrimination for the second year in a row in 2011. A tally of complaints showed that retaliation charges—against an individual for filing a charge of discrimination—accounted for 37,334 of the charges; race discrimination, 35,395; sex, 28,534; disability, 25,742; and age, 23,475.

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