In today's litigious society, businesses are susceptible to a host of employment-related lawsuits, including claims of discrimination, sexual harassment, and wrongful termination. Recently, invasion of privacy claims stemming from employer monitoring of voicemail, e-mail, office computer systems, and the Internet, has fueled the need for a different type of insurance coverage—employment practices liability insurance (EPLI).

Policy Issues

EPLI policies generally cover suits brought against employers, directors, officers, and supervising employees. Coverage usually includes expenses relating to legal defense, indemnity for liability, and administrative hearings or actions.

EPLI coverage may exclude suits involving employees hired under nontraditional employment arrangements, such as independent contractors, consultants, and volunteers, as well as claims involving employment-related defamation, misrepresentation or fraud, occupational health- and safety-related issues, and unfair labor practices.

Coverage Terms

Business owners who purchase EPLI insurance should focus particular attention on policy language that will provide the appropriate coverage for their businesses. Policy terms that may cause confusion include:

• Defined vs. Undefined. The use of specific definitions of coverage may provide a threshold for claims to be tested, i.e., coverage will only be granted for a claim if it meets the express definition contained in the policy. Conversely, undefined terms written ambiguously in the policy may cover all claims, unless otherwise excluded.
  
• "Consent" vs. "Confer." When choosing legal representation, the right of "consent" grants an insured business veto power or authority to influence the insurance carrier's selection of counsel. Likewise, the right to "confer" allows a business owner to participate in the selection process without authority to make decisions.
  

Directions for Loss Prevention

An EPLI policy tailored to the company's needs combined with a proactive employment practices program may provide the best road map to guide businesses safely through employee claims. A few ideas companies may consider to help protect against liability include:

• Designating a human resource manager.
  
• Establishing and maintaining a current human resource policy manual that includes written guidelines for grievance procedures, discrimination issues, sexual harassment issues, and termination.
  
• Requiring managers to obtain training for hiring, conducting performance evaluations, and terminating employees.
  
• Conducting employment practices audits.
  

Cause for Consideration

Some EPLI coverage is only offered in certain states. Therefore, companies with operating facilities in several states should ensure their policy provides coverage for all facilities. While large companies may seem more susceptible to claims, smaller businesses—largely because fewer employees are dedicated to human resource functions—usually face at least the same level of claims exposure. Before deciding whether your company may be immune to the risks of employment-related lawsuits, you may want to consider speaking with one of our qualified insurance professionals. We will help you evaluate your employment practices liability needs.

The sudden loss of a loved one, sustaining a serious injury, or becoming seriously ill can bring financial and emotional stress to your employees and, therefore, to your work­place. However, offering life, health, and disability income insurance policies as an employee benefit can help your workers prepare for these unfortunate situations should they arise.

Life Insurance

The death of a loved one is an unfortunate reality everyone must face at one time or another. If one of your employees dies unexpectedly their family may be faced with some surprising financial challenges. All expenses will continue, despite the sudden, and very noticeable, loss of income. Funeral costs, mortgages, and other outstanding debts, as well as daily expenditures add to the burden. Offering employees the option to buy into a group life insurance policy can help them feel secure that, in the event of their untimely death, their family will at least have some of the burden eased by the help of the deceased's employer. To protect your business from the loss of a key-employee, consider key-person life insurance.

Health Insurance

Staying healthy is a valuable part of ensuring an employee's well- being. To make sure an employee can afford any necessary medical attention, offering a group health insurance policy is valuable. It is also a benefit that will help you attract and retain a quality workforce. Currently, there are four major types of health insurance: 1) fee-for-service, also known as a conventional or indemnity policy; 2) health maintenance organizations (HMOs); 3) preferred provider organizations (PPOs); and 4) point-of-service (POS) policies. Each plan offers its own benefits and limitations, so be sure to carefully evaluate what works best for your organization.

Disability Income Insurance

According to the Insurance Information Institute (2004), the probability of the average worker becoming disabled before age 65 is approximately 21%, while the likelihood that one would die before age 65 is 14%. Yet, disability income insurance is an often over-looked insurance policy. While employers generally recognize a need for a group life policy or a group health insurance policy, they often forget the importance for employees to insure their paychecks. If, due to a severe illness or injury, one of your employees is unable to work for an extended period of time, a disability income insurance policy provides another source of income to help him or her cover financial obligations.

There are a variety of disability income insurance policies; however, they tend to vary in their coverage options. It is important to check the policy's definition of disability. Some may provide benefits only to those totally disabled and unable to work in any field, rather than merely the inability to perform the duties of his/her particular occupation. Also, to protect your business from any loss that may occur should a key employee become disabled, consider the benefits of key person disability insurance.

Illness, death, and disability are traumatic enough for your employees without adding the fear of financial ruin. For your trusted staff to avoid devastating gaps in their insurance plans, make sure the policies you offer contain adequate coverage. Regardless of which plans you choose, we can help you pick a group policy that fits your needs. We are happy to help you evaluate all aspects of the policy to be sure it is tailored to help protect you and your employees.

As a business owner, did you know you can take the lead in cutting costs by establishing an ergonomics program? Ergonomics is the science of fitting job tasks, equipment, tools, and the work environment to workers' needs.

Why wait until you have a major workers compensation claim on your hands before implementing an ergonomics program? Work-related injuries and illnesses cost employers billions of dollars each year. The Occupational Safety and Health Administration (OSHA, 2003) estimates that as many as one-third of these claims are linked to musculoskeletal disorders (MSDs)—such as carpal tunnel syndrome—caused by repetitive stress or sustained physical exertion. MSDs are known collectively as cumulative trauma disorders (CTDs).

Where to Begin

To start tackling ergonomic concerns, appoint a committee representing management, as well as relevant departments such as human resources, engineering, and health and safety. Be sure to include employees from various work areas who perform repetitive or hazardous tasks. One of the committee's main tasks should be to draft a policy outlining the program's objectives. They should also require progress reports for ergonomics projects and review them once the projects are underway.

Identifying potential hazards is not difficult. Records of injuries, accidents, absenteeism, and workers compensation claims can shed light on problem areas. Also, solicit input from employees—a lot can be learned from workers' complaints. Another approach is simply to observe employees at work. Many workplace conditions that lead to musculoskeletal disorders are easily spotted. For instance, check that workstations have proper height, depth, and clearances. In addition, note jobs that involve repetitive operations, or require excessive force or awkward body positions.

Safe Work Procedures

Teach employees to recognize the early signs and symptoms of cumulative trauma disorders. Train them to be aware of ergonomic principles and to follow safe work procedures. Review workstation setups and, if necessary, redesign them with safer, more comfortable equipment to reduce the amount of physical strain they cause. Allow workers who perform repetitive tasks to rotate duties or take periodic breaks.

If you witness signs of hazardous conditions, or receive employee complaints, obtain medical assistance immediately. Untreated symptoms may progress to more serious conditions. The sooner a problem is detected, the better it can be managed.

Implementing a program of sound ergonomic practices before problems occur can save thousands of dollars in workplace-related disorders and workers compensation premiums. It can improve productivity, as well. For more information, feel free to give us a call.

Imagine the impact on your business if you or some of your top managers were injured in the same travel accident. The results could be devastating for your company's future. Although business travel has always involved substantial risk, the globalization of business has expanded travel risk beyond the obvious concerns to include medical emergencies, assault, theft, and terrorism.

This trend has prompted many companies to take a new look at travel-related loss control and insurance. In addition to providing the usual coverage, many businesses are redesigning their travel risk management programs. They may now include protection training for frequent travelers, emergency assistance programs for employees at distant locations, and special insurance for unique risk situations (such as kidnap and ransom insurance).

Divided, We're Safe?

Many companies try to manage travel risk by limiting the number of employees who are allowed to travel together at one time. Unfortunately, this can be difficult to control. Even if employees take different flights to a common destination, they may end up meeting at the airport and sharing the same car and hotel. The bottom line is that it's often simply impractical to expect employees to travel separately.

Covering the Bases

Comprehensive travel risk management programs may now include any of the following:

Medical Coverage and Income Replacement. Traveling employees are considered to be at work and are entitled to workers compensation benefits if an accident should occur. In fact, workers compensation may provide the primary coverage for medical expenses and income replacement. Travel insurance that covers emergency medical assistance may provide emergency care for illness or injury, as well as evacuation, if necessary.

Protection Training. This can take the form of seminars that cover a broad range of topics, such as airport conduct, auto travel (including carjacking), and hotel safety, as well as credit card and ATM transactions. Travel risks are identified and specific safety tips are offered on how to handle these situations. As traveling employees become aware of the risks they may face, they can learn how to reduce their chances of being victimized.

Kidnap and Ransom Insurance. For employees who frequently travel to countries experiencing political upheaval or social instability, kidnap and ransom insurance is becoming a standard part of comprehensive travel accident policies.

The nature and frequency of business travel is constantly evolving. Perhaps, in the not too distant future, teleconferencing will replace business travel as the primary means by which business people communicate with one another. However, a handshake still carries a lot of weight in the business world. Face-to-face meetings may still have great value. By understanding the risks involved in today's business travel, and taking the appropriate measures to manage those risks, you can help protect yourself, your employees, and your investment in your business.