Below you will find a few Employment Practices Liability insurance claims, some
are fictitious while others are based in actual real world claims.. In today's
litigious society, this example may seem extreme but we se them everyday. As one
of the nations largest commercial insurance brokerages, we have Employment
Practices Liability coverage that protect a wide range of employment exposures.
Sexual Harassment Claim - Technology Manufacture "Keep an eye on Supervisor"
Three Former Employees alleged they had been sexually harassed by a technology
manufactures of Computer chips and assorted electronic components. The
formers employees claimed they were offended when a manager repeatedly made
comments in a morning briefing. According to the claimants, the supervisor
continued to make references at the morning briefings despite their having told
him that his comments made them uncomfortable. Although employers often do
not monitor all meeting when they are being presented by a Supervisor these closed door meetings can create problems for employers.
Result: The companies EPLI carrier paid out more than $350,000 to resolve the
matter.
Discrimination Class Action - Watch your Employment Test
A class action lawsuit was filed against a major consumer retail products
distributor. The claimants, all women, alleged that the company
discriminated against them by requiring a strength test at its distribution
facility in Colorado. The test had been in place for years and was a
pivotal step in gaining raises and career advancement. Of the employees
that were able to pass the test 100% were men.
Result: The company was found to have placed barriers to career advancement for
23 women who were in turn awarded $2.3 Million in compensation.
Harassment & Emotional Distress - Should have known Better Boss
At Staffing Firm in Los Angeles, CA one partner made derogatory remarks toward
an invited guest of one of the firm’s summer associates at the summer picnic,
after the partner he had consumed a number of alcoholic beverages. The guest
then tried to leave the situation only to have the partner continue on his
tirade. A few other company partners over heard the insults yet did nothing to
assist the summer employee or his invited guest, who were noticeably
uncomfortable. When the summer employee returned back to college, the company
received a demand letter from an employment attorney on behalf of the employee
and his invited guest, alleging harassment and seeking emotional distress
damages from the partner for the rude behavior at the summer event from the
company for aiding and abedding in the harassment.
Result: The insurance carrier defended the suit but the student was eventually
awarded $250,000
