Even False Accusations Cost a Lot
Accusations of unwelcome sexual advances, verbal or physical conduct of a sexual nature that constitute sexual harassment can be devastating to your business’s reputation and profits.
In 2016, over 26,000 Sexual Harassment claims were filed with the EEOC. Over 6700 of those resulted in actual charges being filed by the EEOC. The total costs paid by the accused business was $40.7 million dollars for businesses that did not wind up in litigation.
Actual innocence is not a defense against accusations. In 2016 the EEOC found that 54% of sexual harassment accusations had NO Reasonable Cause. Defending against false accusations can be costly.
Accusation that go to ligation are even more devastating.
- 2012 – A California physician’s assistant was awarded $168 million
- 2014 – A Galveston, Texas police officer was awarded $567,000 against his female supervisor.
- Fox News Paid $13 million to Bill O’Reilly’s accusers
Successful accusers can collect back pay and punitive damages.
Directors, Officers, Managers, and Employees
Typically, standard business insurance programs are inadequate, either because they provided incomplete coverage for allegations of sexual misconduct or none at all.
Employment Practices Liability Insurance can cover directors and officers, management personnel, and employees for allegations of wrongful acts arising from the employment process including:
- Wrongful Termination
- Illegal Discrimination
- Sexual Harassment
In addition, the policies can cover claims from a variety of other types of accusations of inappropriate workplace conduct, such as employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation.