Earlier this year, 24 entertainment firms agreed to pay $70 million to settle age discrimination claims by 165 television writers over the age of 40 in the largest settlement of its kind. It’s not just big business that is being challenged by age discrimination charges. Two out of three small business owners are concerned that employees might bring discrimination claims or other employment-related charges against them, according to a recent survey conducted by Hartford Steam Boiler Inspection and Insurance Company (HSB).
The HSB survey of small business owners found that 42% felt more vulnerable to employment charges because of a weak economy and recession-fueled layoffs. In addition, the survey noted that many small business owners greatly underestimate the true cost of defending themselves against an employment claim, which could range from $22,400 to $40,500 or more.
To reduce the likelihood of any employment discrimination charges, EMC loss control experts recommend organizations have a formal policy regarding equal opportunity and harassment/discrimination in place and to make certain employees know and follow those policies. It is also important that the policy includes a formal procedure for investigating complaints.
Protect Yourself With Employment Practices Liability
Employment practices liability (EPL) coverage is available as part of the EMC Choice® Businessowners Program. Our EPL coverage, designed for “main street” businesses with 50 employees or fewer, can help defend against employment discrimination, sexual harassment and wrongful termination employment claims that can be expensive, disruptive and time-consuming.
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