In today’s workplace, 60 percent of employers will eventually face a lawsuit related to alleged unlawful employment practices, according to Jury Verdict Research.
These cases pose a financial risk to any business. Defending a wrongful termination or discrimination claim – even when the claim is groundless or fraudulent – can be expensive.
Consider this data from Jury Verdict Research:
- At some point, three out of five employers will be sued for an employment practices event
- Most litigation against employers involves employment disputes
- The average verdict in an employment practice case runs between $55,000 to $75,000 for small employers
To help employers navigate these claims and reduce or eliminate the expenses associated with them, Mountain West Agency Services, a licensed insurance agency and subsidiary of SCF Premier Insurance Co., can now provide an insurance product to SCF policyholders in Arizona for these types of situations.
Employers Advantage Protection and Employers Advantage Protection Plus will be offered exclusively to SCF policyholders to complement their existing SCF workers’ compensation coverage. The products, which differ only in the amount of coverage offered, provide insurance coverage and loss control expertise to businesses trying to avoid or facing legal claims arising out of employment practices liability.
“It should dramatically cut employers’ costs when defending themselves against work-related legal action such as discrimination, wrongful termination or sexual harassment,” says Don Kasper, General Manager of Mountain West Agency Services.
Known as employment practices liability insurance, these products indemnify and defend employers on covered claims, and will provide employers with advice and consultation from employment law specialists.
The products are aimed specifically at employers with five to 100 employees. Those employers often do not have human resource departments, employee manuals or training programs to help them avoid such legal land mines, says SCF Arizona Sales and Marketing Director Phyllis Senseman. Employers Advantage Protection fills this need.
Companies eligible to buy the product receive access to a website with online training and downloadable employee handbooks. The standard policy is expected to cost less than $50 annually per employee.
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