Mitigating Risk of Increased Employee Litigation

Litigation against employers – whether for sexual harassment, discrimination in the workplace, or wrongful termination – is on the rise, much of it due to today’s challenging economy and high unemployment. Disgruntled employees who have lost their jobs are confronted not only with a bleak job market but depleted savings accounts and higher debt – and often strike out at their former employers with legal action.

No company – within the toy industry or otherwise – is immune from this recent outbreak in litigation. To protect their company from these types of charges, more and more business owners or corporate risk managers are considering Employment Practices Liability Insurance (EPLI). These insurance policies provide coverage to protect employers against potential claims made by employees, and have recently been expanded to cover more types of employee lawsuits.

According to TIA affinity partner HUB International, despite the increased coverage the cost for EPLI protection has recently decreased.

“Considering that the legal fees alone for one unexpected claim or loss can lead to the failure of a successful business, it’s more important than ever to have a comprehensive insurance and risk management program in place,” said Benjamin Thrush, vice president of new business development at HUB International.

For more information on the insurance offerings that have been customized for the toy industry, please visit the broker’s website.  For a free analysis of your current policy or for answers to questions about EPLI, contact Benjamin Thrush  directly at 1.800.706.3023.