Sex harassment cases against employers expected to surge
Insurance industry experts -- lawyers, brokers, and consultants -- are warning businesses of all sizes to review their insurance policies, bolster coverage, if necessary, and limit risk. They are also advising companies to take a long, careful look at their corporate culture to address potential problems before they erupt into a courtroom or an expensive settlement.
"What we've seen is the tip of the iceberg," said
The number of high-profile sexual harassment cases exploded last year, with allegations of impropriety derailing the careers of scores of powerful men, including
The charges against entertainment figures and politicians have garnered the splashiest headlines, but "every company is susceptible," said
"The world has changed," Hartzell said. "I could tell you stories that would make you shudder."
Harzell insures thousands of clients across the country, mostly small businesses ranging from restaurants to trash haulers to law firms.
Fortune 500 companies have long carried it. But the majority of small businesses don't have EPLI coverage, Hartzell said, or don't have enough of it.
"People don't want to pay for it," Hartzell said. "Some people don't think they have a problem."
An EPLI policy for a business of 15 employees runs about
"I've had it myself for many years," Hartzell said. "I've never had a claim, but I still have the coverage. It's money well-spent. I want to be able to sleep at night."
Gauging the size of the EPLI market is difficult because most insurance companies bundle it with other policies and don't break it out on their reports. ISO MarketStance, a research firm that tracks insurance trends, estimated that
Only 11 percent of business with 20 to 50 employees are covered, Yohn said. "Those are companies whose financial resources are less protected," Yohn said. "That's where we think the growth is going to occur."
The price of EPLI for America's largest companies has increased 30 percent since 2011, according to
Premiums rise only when the policy pays out, Steinmiller said. So smart companies are getting more proactive managing the risk.
"They're reevaluating their employee handbooks, reviewing how they handle complaints and offering training to their workers," Steinmiller said.
Steinmiller said staff should be encouraged to report harassment, but it also needs to be clear who will be taking those confidential complaints. That's usually someone in human resources or an ombudsperson.
"If you don't tell them who to report it to, it's pretty meaningless," Steinmiller said. "It's not effective."
Those reports should also be relayed to the insurance carrier, she said. If a company continues to employ a known serial harasser, the carrier can exclude that person from the policy -- opening the company to greater liability. If the offender is a top salesperson or a top billing lawyer, that can create massive turmoil within a company.
Training can prevent harassment before it occurs, said
"Risk control is an important part of the equation, it's not just buying insurance," Flitner said. "A proactive approach to preventing sexual harassment is the best way to manage sexual harassment risk."
___
(c)2018 Philly.com
Visit Philly.com at www.philly.com
Distributed by Tribune Content Agency, LLC.
Marines: Helicopter that crashed near El Centro began trip from 29 Palms
Philly.com Bonnie L. Cook column
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News