The number and cost of employment practices claims are steadily rising. The average jury award in discrimination and sexual harassment cases nearly quadrupled from $64,750 in 1996 to $250,000 in 1997 and continues to rise.
You can try to do everything right and still find your business subject to claims of wrongful employment practices. Whether the allegations against you are legitimate or unfounded, you may be faced with expensive legal bills.
No ophthalmic practice is immune to lawsuits. Any practice with employees should seriously consider adding Employment Practices Liability Insurance coverage (EPLI). OMIC and the American Academy of Ophthalmology have developed an EPLI policy to provide defense and indemnity coverage for many types of wrongful employment practices. In addition, OMIC's highly acclaimed risk management programs and services are available to help EPLI policyholders address work-related problems before they arise.
Who is covered?
The health care entity; current and former appointed directors and officers, and any current and former employees, including volunteers, independent contractors, and leased employee.
What claims are covered?
The policy covers wrongful acts directed against any employee, former employee or employment applicant arising out of an employment relationship.
- Discrimination based on race, religion, age, sex, national origin, disability or any other protected class.
- Harassment, sexual or other.
- Wrongful termination, including wrongful discipline or evaluation; retaliation; demotion; failure to hire or promote; or breach of employment contract.
- Retaliation in response to whistleblower actions or other.
What losses are covered?
The policy covers defense expenses; damages, including multiplied and punitive damages; judgements, including interests; and settlements.
What prior acts are covered?
The policy automatically includes coverage for claims made during the policy period arising from incidents that occurred any time before the policy effective date. Claims are not covered, however, where directors and managers had reason to believe a past wrongful act could be expected to give rise to a claim.
What are the coverage limits?
Coverage is provided on a claims made and reported basis with defense expenses included within the limits. Limits range from $100,000 up to $1,000,000 per claim and annual aggregate. Varying deductible options are available starting at $10,000.
What additional coverage options are available?
Insureds may include the following in their coverage.
- Third party coverage protects the insured from suits brought by people who are not in an employment relationship with the insured, such as hospital personnel, independent contractors, or vendors.
Click here to request an Insurance Application Form
