All entities with a hired staff, including schools and other institutions, automatically face exposure to risk. Lawsuits are rising throughout the country, including discrimination cases that can result in millions of dollars worth of damages. Employment practices liability (EPL) claims are common, and without the proper liability insurance, educational facilities can find themselves in financial trouble. Employment practices liability insurance is one solution that insurance agents can offer to help educators mitigate risks and protect against liability.

Understanding Employment Practices Liability Insurance

 School employees are just as likely as other employees to allege wrongful termination, sexual harassment, and discrimination. Thus, employment practices liability is insurance that protects against various employee lawsuits, including:

· Sexual harassment

· Wrongful termination

· Breach of employment contract

· Discrimination

· Negligent evaluation

· Mismanagement of benefits

· Deprivation of career opportunity

When schools face lawsuits, it is up to the institution to pay the associated legal fees to defend themselves and, again, to pay for any damages the plaintiff wins. Additionally, insurance coverage allows schools to fight claims by paying legal fees and awarding damages. Educators liability coverage may also offer loss prevention and risk management strategies.

Key Coverage Considerations for Education Institutions

How staff, educators, and other workers within the school are classified can vary tremendously. You may have full- and part-time employees alongside independent contractors and volunteers. When choosing insurance coverage, schools need to create a broad definition for employees, including all who work for the school.

Additionally, coverage should extend to claims from current and former employees. Just because someone stops working for the institution does not mean they can no longer file a lawsuit based on what happened while under the school’s employ. Likewise, many employees file wrongful termination claims when no longer employed.

When insuring schools, agents should consider the risks and their associated costs and ensure that the policy limits and deductibles provide adequate protection. Additionally, they should consider other professional liability insurance policies. Many businesses want to save money on their policies, but it is crucial not to cut corners such that it may eventually hurt the institution.

Risk Management and Loss Prevention Strategies

 Protection doesn’t start with insurance coverage. Ultimately, it begins with risk management policies that lower a school’s overall risk. Educators should establish comprehensive human resource policies and procedures, including fair employment practices and equal opportunities. There should be rules that encourage a respectful work environment. Likewise, it is best to enforce all regulations. 

Staff need to feel comfortable and confident enough to report any instances of a hostile work environment. If staff feel uncomfortable or do not feel the administration will take them seriously, they are more likely to file a lawsuit rather than report the claim internally.

To reduce risk, schools may want to host regular training sessions on inclusion, harassment prevention, and diversity.

The Necessity of Employment Practices Liability

To provide employment practices liability insurance to schools and educators, agents must clearly grasp the unique risks experienced by educational institutions and staff members. Professional Governmental Underwriters understand the unique risks involved in education and offer comprehensive liability options.

About PGUI

Professional Governmental Underwriters, LLC., is a full-service risk management company dedicated to assisting public, educational and non-profit entities in the management of their professional liability exposures, including educators liability insurance. We are dedicated to providing state-of-the-art professional underwriting management and loss control advisory services on behalf of our designated carriers. For more information, call us toll-free at (800) 586-6502.