Imagine this, a part-time server at a small restaurant complains to her manager that one of the cooks continually makes sexually suggestive remarks about her body and clothing.  In fact, the server is so upset by the commentary that she would often switch shifts to avoid working during the same time as the cook.  She complains to her manager about the harrassment, but since the restaurant is short-handed, he is reluctant to terminate the cook.

The server quits and files a charge with the Equal Employment Opportunity Commission (EEOC). In this type of situation, it’s likely the EEOC would provide the server with a right-to-sue letter after their initial investigation. 

Most likely the restaurant owner doesn’t have Employment Practices Liability Insurance (EPLI) because it either was never offered to him/her or it was and it was too expensive for him/her to afford. 

Unfortunately this has been the case with many small businesses, that EPL insurance was never offered or was too expensive.  A case like the one above has a potential settlement of $40,000 with legal fees in excess of $10,000.

The scary thing about these types of lawsuits is that over 75% of the claims are groundless and the burden of proof is on the employer.  Once a claim is filed the claimant can just sit back and watch the company rack up legal fees to defend their claim. 

Now this is the type of claim that most people relate to large corporations, but 52% of the charges filed with the EEOC we against small businesses with 200 employees or less. 

EPL insurance not only protects employers against harrassment charges, but also provides coverage for discrimination and wrongful termination claims.  An employer can purchase optional coverage to cover any lawsuits that may be brought against them by their clients as well. 

Since there have been over 100,000 claims filed with the EEOC and over $376 million awarded, insurance companies have been taking note.  Erie Insurance has decided to provide coverage by endorsment to their business insurance policy to the small business owner at an affordable cost to help protect them against potential claims. 

Erie’s coverage is rated based on the number of employees and the amount of coverage selected.  The nice thing about Erie’s coverage is that if you have less than 50 employees and select $250,000 of coverage or less that there is no additional underwriting required.  The important point to remember about this coverage is that it covers the cost of your legal defense even if the claim is frivolous. 

Employers should be asking their insurance agent/company for a price on this coverage.  As careful as you run your business, you never know when someone could allege discrimination, wrongful termination or harrassement charges against your Company.

With this recent downfall of snow, it helped me see some of the potential hazards that arise around my home due to the snow fall.  I urge you to take an assessment of the hazards that may occurr around you home and be proactive in eliminating them.

There was so much snow on my roof that it drifts over the edges of the roof and creates an avalanche below.  Luckily I haven’t been standing underneath my eaves as the snow comes crashing down, but it is fun to watch from the inside of the house.  It can be so loud that it will sometimes wake me in the middle of the night and I’m a sound sleeper.  I realize that when I leave my front door, I need to look up before proceeding, so I don’t get clobbered, but what about my unsuspecting guests or mail person who aren’t aware of the dangers around my house.  There is a potential hazard of snow and ice dropping from 20 feet above, which could injure someone pretty good.  If you see these drifts on your roof be proactive and get a snow rake from your local hardware store that will allow you to remove some of the snow from your roof.  I do not recommend getting on the roof with a shovel, with the ice and snow build-up you are only asking for a fall and even with all of the white fluffy snow below a fall off the roof will hurt. 

I also recommend checking around the outside of your house for spots where ice forms that could be potential slip hazards for you and your guests.  Remove all of the snow and ice from these areas like steps, walkways and driveways and if necessary use some salt or snow melt to remove any of the remaining ice.  I have a couple of steps on the side of my house that buildup ice and I’m always try to remove it because even though we don’t use the steps at all in the winter, I know that the RG&E meter reader and any other utility company employees will use those steps to get to the back of my house and I want to make sure that anyone that accesses my property is safe. 

Now if you have icicles that build up around your house, you most likely have a heat loss problem.  I would recommend speaking with a qualified contractor to resolve the problem.  Not only are you wasting money on expensive heating bills, but icicles have the potential danger of falling onto someone and injuring them or causing damage to your house like tearing the gutters off or leaking back into the house as the ice damns up and can get under your roof shingles. 

When there is so much snow you run out of places to put it.  I find it tough to see out of the end of my driveway because the snow banks are so high.  I get a double whammy with the street plow and the sidewalk plow.  I make sure that I go slow out of my driveway to make sure that there isn’t any traffic coming that I wasn’t able to see behind my banks and when I have time I try to get out there and knock down my banks, so I can see better. 

Be sure to take an assessment of your house to see where your potential hazards are for you and your guests and do your best to eliminate them.