There is a new danger facing NC businesses.  This type of litigation is growing in frequency and severity and it is increasingly finding its way into North Carolina courtrooms.  Most businesses owners probably haven’t given the risk of an employee lawsuit against them much consideration, and perhaps some that do might mistakenly think that they are protected by their general liability insurance policy or their workers compensation insurance.  This kind of thinking can end of costing an employer big money.  Take the time to understand the risks and how employment practices liability insurance might protect your company.

Employment practices liability insurance, called EPLI for short, is a relatively new form of insurance, first coming into existence in the early 90’s.  Over time these policies have evolved to provide broader coverage and better protection as the insurance companies have learned more about this risk and how best to insure against it.  The policy form is still not standardized, like personal auto insurance or your businessowners policy, but the different forms offered by different insurance companies are getting closer to one another all the time.

So, what are the risks that EPLI is designed to protect against?  The most common type of claim is discrimination.  As you can imagine there are many different types of discrimination claims, including age, gender, sexual orientation, race, color, creed, religion, pregnancy, national origin, marital status and disabilities.  Remember, that these claims can evolve from the behavior of your managers and officers as well as from other employees. 

Most EPLI policies also protect against sexual harassment claims, including those against supervisors and fellow employees.  Also common are wrongful termination claims by former employees who might claim that they were unfairly let go.

Some policies even cover whistleblower claims.  These are claims by those who allege that they were victims of adverse employment decisions based on the fact that they disclosed an unfair of illegal practice of their employer. 

The median size of EPLI awards has risen from about $90,000 in 1996 to over $200,000 by 2006 and is much higher today.  And these awards numbers do not include the cost of defending your company against these claims, costs which can often run $60,000 or more.

If I still haven’t convinced you to consider buying this type of insurance for your business, then let me give you one last, pretty stark figure.  EPLI insurance is not inexpensive.  A good average for this type of policy would be somewhere around $75 per employee per year with minimum premiums often over $1000.  And the marketplace of insurance companies that provide this type of policy is very competitive.  What that tells me is that the risks are pretty good that you will face one of these claims at some point in your career as a business owner.  The insurance companies have access to the real numbers out there and they understand the risks.  If they have to charge this much for a policy, then the risks must be very high.

Clinard Insurance Group is a family owned, independent agency located in Winston Salem, NC.  We strongly urge every business that employs people to study, understand and consider employment practices liability insurance.  These policies are a bit complicated and differ in significant ways from the insurance policies that you are comfortable buying for your business.  Don’t try a do it yourself approach and don’t leave this to an agent who doesn’t understand EPLI.  If we can help you with your EPLI needs, or your other business insurance policies, please call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

Workers compensation insurance is rated based on the loss experience of your operations.  If you have high loss frequency, or if one of your employees suffers a severe loss, you will feel the sting on your workers compensation rates for years afterward.  To read more about exactly how this happens, please visit my blog article on protecting your experience modification factor.   For landscaping companies, the Summer season means more work available, but that time of year also brings some specific risks to your employees.  Here are some tips on ways to protect your employees from some of these seasonal risks.

One of the most common sources of injuries to landscapers here in North Carolina is heat related illness.    You should make sure that your crews are prepared for an emergency.  Watch for symptoms such as profuse sweating, skin that is extremely hot or cold to the touch, dizziness or nausea.  You may also want to implement shorter work schedules and start earlier and stop at mid day heat and resume again in the late afternoon.  Keep plenty of cool water available (at least 4 cups of water per hour) and make sure that your workers have shady places to take their breaks.  It is important as well that you not wait until an employee feels sick in order to allow them to take a break. 

Snakes are also a threat to workers in the summertime.  Warn your workers to be careful about where they place their hands and feet when moving debris.  They should always wear gloves when moving debris about and not reach blindly under debris when moving it.  They should also wear boots at least 10 inches high.  If someone encounters a snake, have them step back and allow it to proceed.  Make sure that your employees understand that a snake’s striking distance is usually ½ the total length of the snake.  If someone is bitten, note the color and shape of the snake’s head.  Keep bite victims still and calm to slow the spread of any venom in case the snake is poisonous.  Do not cut the wound or attempt to suck the venom out, lay the victim down so that the bite is below the level of their heart and cover the bite with a clean, dry dressing.

Insects can also be a danger.  You should know in advance if any of your employees are allergic to any insect bites and if so, you must keep the appropriate medicines available to them in case they are stung or bitten.  Severe reactions to bites or stings such as chest pain, nausea, loss of breath, sweating or slurred speech require immediate medical treatment.

One other risk your employees may face is exposure to herbicides and pesticides.  Make sure that all employees are fully trained in the use of these chemicals and that they understand exactly what to do in case of overexposure. 

Taking precautions with your employees during the summer months should help you avoid some injuries and mitigate those that were unavoidable.  The last things you want to face are employee downtime and higher workers compensation rates due to avoidable accidents.  At Clinard Insurance Group, in Winston Salem, NC, we insure dozens of landscaping companies all across North Carolina.  Our specialize landscapers insurance program can help you save money while getting the protection you need  on your general liability insurance, the insurance on your trucks and your equipment as well as your workers compensation insurance.  Give us a toll free call today at 877-687-7557 or visit us on the web at www.LowRatesForLandscapers.com.