Employment litigation on the rise – Protect your practice

June 2011

Today, employment litigation is on the rise and the Medical Society of Virginia (MSV) and MSV Insurance Agency (MSVIA) want to make sure you are prepared to decrease your exposure in the event of an employment suit.

What is employment practices liability insurance?
Employment practices liability insurance provides defense protection to an employer against lawsuits made by employees, former employees or potential employees. Some examples of such suits are:

• wrongful termination
• breach of contract
• sexual harassment
• failure to promote
• invasion of privacy
• wage/hour law violations
• other employment-related issues

Why is employment practices liability insurance pertinent to a medical practice?
Like any other employer, medical practices should have the protection they need. Employment practices claims are among the most common lawsuits brought against a company’s management, according to a Towers Watson survey titled, 2010 Survey of Insurance Purchasing Trends. The survey shows that 30 percent of all reported directors and officers liability claims from public, private and nonprofit entities were in the category of employment practices. Employment practices issues affect every size and type of company and industry.

How does a practice get employment practices liability insurance?
There are several ways to get employment practices liability insurance, but the easiest way is to seek an insurance agent who has experience with executive risk insurance. Employment practices liability is often part of an executive risk management program and is therefore written as part of a package with directors and officers liability, crime and fiduciary liability. When written as a part of a package, it may be purchased at a fraction of the premium.

What are some other benefits to employment practices liability insurance?
Insurance packages containing employment practices liability insurance often include items like hotlines with a few hours of free legal service per incident or preventative training on how to deal with sensitive issues with employees. The insurer often offers educational resources, searchable databases for standard employment-related documents, checklists and communication tips.

The best benefit of employment practices liability insurance is the protection it provides a practice from lawsuits from employees. It’s a safeguard against the costly lawsuits that result from employee issues every day. Contact the Medical Society of Virginia Insurance Agency (MSVIA) at 877 | 226-9357 today to learn just how much your practice could save from having this kind of coverage.