A Closer Look at the Purpose and Benefits of Employment Practices Liability Insurance

Raffi Kodikian

October 11, 2021

Raffi Kodikian Takes a Closer Look Purpose and Benefits of Employment

Raffi Kodikian Looks at How Employment Practices Liability Insurance Works in the Real World

Employment practice claims are on the rise, which is why employment practices liability insurance has become more of a necessity than ever before. Raffi Kodikian, an expert on liability in the industry, looks at the reason for the policy and the benefits behind it.

Raffi Kodikian has followed the trends of professional liability for nearly two decades now, and he has learned a lot about how the right insurance policies can make a difference in the lives of employers. He takes a closer look at not just how claims work but also why it’s become so necessary in today’s litigation-focused world.

What Does Employment Practices Liability Insurance Cover?

In general, a typical policy will cover the following:

  • Discrimination
  • Retaliation
  • Violation of the FMLA
  • Wrongful termination/discipline
  • Failure to promote

If an employer is accused of the above, they can file a claim to help with the associated costs.

Please note that the expenses of a claim can be staggering, as they often involve trying to sort out very complex situations. Raffi Kodikian knows just how difficult these matters can be to adjudicate, particularly when the parties disagree on the facts. 

Kodikian on the Details of Liability

Every case is tried differently when it comes to liability, but employers are often astonished at what they are sued over. For instance, let’s say that an employer has passed over an employee for a promotion because they are often late and rude to their co-workers. However, the employee sues under employment practices law because they believe it had to do with the color of their skin. The employer would have the burden of proving that the employee was less qualified than other candidates, which will cost time and money to do.

Whether the employee prevails or not is often not even the issue. It all comes down to how much it costs to fight or settle the claim. A good insurance policy will keep an employer from having to shoulder the expenses and can often save them hours of productivity by providing expert advisors to help resolve the claim.

Kodikian understands that there are plenty of legitimate liability claims by employees. However, in a world that often prompts people to use litigation as the first resort rather than a last resort, he also recognizes that employers can easily end up on the wrong side of the accusation.

Having the right insurance policy in place can be the best way to keep a business afloat, even in the midst of a complicated legal process. For best results, Kodikian recommends thoroughly reviewing the terms and conditions of a policy to ensure they cover a range of potential circumstances.