Retaliation claims are on the rise for insurers and employers
Travelers executive Chris Williams explains some of the factors related to this increase.
Workplace issues involving employees are common in businesses and many of the claims that arise are covered by employment practices liability insurance. However, insurers have been seeing a troubling trend over the last several years as the number of retaliation claims has increased.
Retaliation claims generally result when an employee alleges discrimination based on a protected status such as race, gender, religion or disability and is then subject to some form of retribution by the employer or an individual representing the company.
According to the U.S. Equal Employment Opportunity Commission, the number of retaliation-based charges has risen steadily since 2007, when 26,663 were filed, to 2020, when that number grew to 37,632.
In the latest edition of PropertyCasualty360.com’s Insurance Speak podcast, Chris Williams, employment practices liability product manager for Travelers Insurance, discusses what is contributing to this increase and other factors employers and insurers should be watching.
Williams explains that retaliation claims “occur when an adverse action is taken against an employee for a covered issue.” For example, this can involve someone who files a complaint with the Equal Employment Opportunity Commission (EEOC) and is then fired or perhaps demoted. Another example could be an individual who refuses to engage in illegal conduct for the company and is terminated.
“It’s never okay to retaliate,” emphasized Williams. However, he says that in some cases, the retaliation may be unintentional, or there could be a dispute about what actually transpired. In addition, sometimes company representatives may not be aware that a particular activity or individual was protected.
For more information on what kinds of insurance cover these claims and recommendations on how companies can reduce their risk, listen to the podcast above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.
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