I include a discussion on e mployment practices liability as part ofevery diagnostic appointment I have with every business insurance client I meet with. I saythe same thing, “Your employees are not your family and they arenot friends, even if they are.” Unfortunately, for aboutseven out of 10 of them, the response I get in returnsounds something similar to this, ”We're like a family here,we don't have to worry about things like that.” My response is always, “That's great! Have youever gotten upset and said or done something you regret to a familymember?” Best friends, husbands and wives, fathers and sons,brothers and sisters break-up operating businesses every daybecause of disagreements over how things are done. If youdon't believe me read the local newspaper or ask your localgossip.

These situations often get very nasty. An organization's dirtylaundry is often used as leverage and information starts to surfacethat you might of otherwise been able to keep hidden… and thelawsuits start to fly.

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Let me say this again… your employees are not yourfriends and they are not your family, even if theyare. Your employees are your employees and you musttake the necessary precautions to protect your business.

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Employment Practices Liability
The example I used above was very specific and there is a goodchance you cannot relate. If that's true try this on forsize, whether you want to believe this or not, things happenat your business that you are not aware of.

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Many employers are under the misconception that employmentpractices liability only covers discrimination. The truth isemployment practices liability provides coverage for a bunch ofcrappy things that can take place within your organization,and in my professional opinion, it's as much a musthave coverage as generalliability.

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Coverage is provided for but not limited to:

• Discrimination: Disability, racial, religious, gender, ageand all other protected classes
• Sexual harrassment
• Wrongful termination
• Unsafe workplace

Many employment practices liability policies also coverwrongdoing by third parties. You hire a contractor to comeinto your office and update the kitchen. Over the course of a weekof work he continually makes advances at yourreceptionist. When she denies his advances he goes psycho andbegins to stalk her. She no longer feels comfortable or safeworking in your office and files a lawsuit for emotional distressand lost wages from missed work.

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What did you do? You just hired a contractor. But as theowner of a business with employees, you are responsible forevery person that comes into your office.

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It can be a scary world. Be prepared and be careful.