Practice Pearls

By PVMA Partner, FocusHRO

Employment Practice Liability

Important Coverage for Veterinarians

By PVMA Partner, FocusHRO

Your practice may have never experienced a fire, but you have your building insured in case it ever would, right? Did you know that businesses are three times more likely to be sued by an employee than experience a fire? Yet many owners don’t consider purchasing an Employment Practice Liability Insurance (EPLI) policy to provide themselves with the correct coverage for those issues—or they mistakenly believe that their current policy provides it. Many veterinarian practices might believe that the size of their staff is too small, too much like family, or that the cost for coverage is too high. But the truth is, the cost of not having coverage could be even higher; out-of-court costs average $75,000, and the average jury award hits $217,000 if you go to court and lose.

EPLI protects you and your practice when employment claims occur. Policies cover defense costs associated with allegations of discrimination (age, sex, race, religion, and disability), sexual harassment, wrongful termination, or wrongful discipline. Veterinary hospital practice owners are vulnerable from the prehiring process through the exit interview, even if the employee was never hired, or only at the company a matter of days. Even if allegations are groundless or fraudulent, coverage will protect you from monetary damages that could seriously threaten the ongoing viability of your practice. Your owners, directors, managers, doctors, and technicians all receive protection.

Facts

1. Three out of five employers will have an EPL claim in the next five years. 2. No veterinary practice, large or small, is immune to EPL claims. 3. 30% of all EPL claims are against employers with less than 50 employees. 4. Employment-related lawsuits can come from your employees, clients, vendors, and/or independent contractors. 5. Every practice owner should consider adding EPLI to their insurance and risk management portfolio. Statistics indicate that owners are more likely to have an employment practice claim than a general liability or property loss claim. And EPLI claim rates have been climbing from recent societal issues—gender pay gap, #MeToo, racial and social injustice movements, COVID-19, and more. For many practices, EPLI claims are not a matter of “if” but “when.” So, even though you may have never dealt with an employment issue and your current policy may include EPL items, it’s important to review your coverages and purchase the right policies—just “in case of fire.”

PVMA preferred partner FocusHRO is ready to help do just that: checking your current lines of coverage, adding employment practice liability or other liability, and workers’ compensation coverages you might need. Their team is ready to help take these necessary steps off your already long to-do list and bring you peace of mind and potential savings.

Visit FocusHRO.com/PVMA or call Tara Schlyfestone at 717.980.3330 extension 109.

About FocusHRO: Your PVMA Membership gives you and your practice access to FocusHRO’s best programs and pricing. They’ve created “Business in a Box,” which takes the guess work out of running your veterinary practice and lets FocusHRO handle all your insurance, HR/compliance, accounting, and web/IT needs. These services help keep your veterinary practice running smoothly. Visit FocusHRO.com/PVMA or call 717.980.3330 to get more information.