Employment Practices Liability
Cannabis companies with any number of employees face the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.
Who is EPL Insurance for?
In the US, lawsuits relating to employment practices are increasingly widespread. From harassment to discrimination to wage and hour disputes, these claims are not only popular, but they are easy for employees to file. Unsurprisingly, our government funnels the American workforce toward litigation — and businesses of all sizes must prepare.
Cannabis companies with one or more employees face unique challenges navigating employment-related disputes. Unfortunately, employers can knowingly and unknowingly overstep their employees’ rights in many ways. Employment practices liability (EPL) insurance covers businesses against claims that allege employers have violated their workers’ employment rights.
In the current legal landscape, EPL insurance is a recommended coverage for companies with any number of employees.
It’s common for this industry to face more employment-related lawsuits than other markets.
Employees come and go in the retail world, leaving room for plenty of lawsuits.
Why you need EPL Insurance?
Protect your cannabis company from costly defense fees
Helps manage unavoidable risks of having employees
Protects against ever-growing settlement trends
What does EPL Insurance cover?
Employment practices liability (EPL) insurance covers businesses against claims that allege employers have violated their workers’ employment rights.
This occurs when an employee’s termination breachers one or more terms of a contract or breaks a rule of employment law.
Unfavorable treatment of an employee, such as failure to promote, based upon sex, race, age, or disability.
Defamation of Character
This happens when a false statement is written or spoken about an employee intended to harm their reputation.
Invasion of Privacy
An employee alleges that an employer unreasonably searches their private space or conducts surveillance in areas where employees expect privacy, such as a dressing room or bathroom.
This involves unwanted sexual advances or obscene remarks to an employee.
EPL Insurance Considerations
EPL Insurance Considerations
EPL Insurance Claim Examples?
An age discrimination lawsuit was brought by a highly paid 62-year-old sales representative employed by the YounGuns. He was terminated for not meeting his sales quotas. Despite layoffs and cutbacks at the company, no documentation showed the sales rep was a poor performer. The suit was for $500,000 but was settled for $100,00 plus $15,000 in defense costs.
A group of Indian descent applicants sued a private retail store for ethnic and racial discrimination after learning they had been denied employment strictly based on their race and ethnic background. The defense cost and settlements amounted to over $200,000.
The Assistant to the Chief Financial Officer was terminated for divulging confidential information to staff regarding impending company layoffs. The assistant brought a suit for retaliation and sexual harassment as she claimed the CFO always made suggestive comments and improperly touched her. Defending the CFO cost over $150,000.
EPL Insurance FAQ’s?
The cost of EPL Insurance will depend on several things, including the company’s size and the company’s stage of development. Other factors include:
- Exposures: risks being insured.
- Company practices: views on safety, compliance, and risk management.
- Program structure: the amount of deductible and willingness for a company to assume more risk
- Claims history: the type and amount of past claims against the company