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Small business owners should take steps to prevent discrimination claims

Download HSB's infographic highlighting the risks and some solutions

The potential for a costly discrimination claim is a big risk for small business employers. In fact, HSB insurance data shows employment practices liability claim settlements average between $27,000 and $54,000. The amount paid for a legal defense averages $10,000.

Settlements are expensive

That's a significant cost for a small business owner who typically takes home approximately $60,000 in annual salary. Without employment practices liability insurance, the financial impact of a workplace claim or lawsuit could be devastating to your client's business.

Retaliation is a serious concern

Many of these complaints involve charges of retaliation, with employees claiming they were punished for alleging discrimination, or for participating in a discrimination proceeding against their employer.

Thousands of complaints are filed

In its latest report for 2015, the U.S. Equal Employment Opportunity Commission (EEOC) said it received 39,757 retaliation claims and recovered $178.3 million in monetary benefits from employers. Many smaller businesses paid penalties and settlements.

Workplace training and policies are key

There are proactive steps small-business owners can take to help prevent or minimize the chance of an employment claim. Amon them:

  • Train managers and employees to understand and follow employment laws;
  • Follow changes and updates in laws and employment regulations;
  • Cover the business with Employment Practices Liability (EPL) insurance.

Share the EPL infographic with clients

HSB produced an infographic to highlight the risks of employment claims for small business owners. You can view the complete version here.

Copy and paste the code below to download and share HSB's EPL infographic on your website.

<p><a href='http://www.munichre.com/HSB/epl-infographic/index.html'><img src='http://www.munichre.com/site/hsb/get/params_E2132217649/1185993/epl-retaliation-infographic.png' width='' border='0' /></a></p>

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Small business owners should take steps to prevent discrimination claims