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Necessary Protection for the Business Side of Your Medical Practice |
The number of lawsuits being filed against physicians and their medical practices for employment related issues has been steadily on the increase, and the damages being awarded in these cases continues to increase as well. In their role as employers, physicians and their medical practices are subjected to the risk of lawsuits stemming from employment related issues such as wrongful termination, sexual or other harassment, and age, race or disability-related discrimination.
Why practices must have coverage.
A mere twenty years ago, employment practice suits were relatively rare. But in 1997, the Society for Human Resources Management surveyed its members and found that 57 percent of respondents had been targets of employment related lawsuits in the previous four years.
Courts "flooded."
Today’s courts are being flooded with employment practices related suits said U.S. District Court Judge Stanley Sporkin. The number of sexual harassment complaints received by the U.S. Equal Employment Opportunity Commission increased from 6,883 in 1991 to over 15,600 in 1998.
And when it comes to employment cases involving civil rights in federal court, an Insurance Information Institute study shows that cases have more than doubled from 1992 to 1996. Racial harassment charges rose to nearly 10,000 in fiscal 1998 from nearly 5,000 in fiscal 1991. The Insurance Information Institute notes that the average award for sex discrimination was $106,728 in the 1988-1994 period. Legal fees reportedly well exceed that amount.
"Lawsuits gone wild."
Nations’ Business Magazine, in an article in its Feb. ’98 issue entitled "Lawsuits Gone Wild," put it very bluntly: "Your small business can be devastated if a trial lawyer and a disgruntled employee file a lawsuit."
Experts credit this mounting litigation to the public’s new awareness stimulated by high profile cases and a litigation climate stemming from continuous tumultuous economic conditions — constant mergers and acquisitions, downsizing, outsourcing, etc. For all that, Employment Practices insurance is well on its way to becoming a necessary product in a practices’ insurance portfolio.
In an effort to provide physicians and their medical practices comprehensive professional liability coverage, ISMIE offers the necessary protection from employment practices liability through our EPLI program...
ISMIE EPLI.
ISMIE’s Employment Practices Liability Insurance (EPLI) is specifically designed to protect physicians and other health care employers from the potential damages and costs involved in employment practices litigation. Our policy is flexible so as to meet the unique needs of a solo practice as well as the requirements of physician groups.
ISMIE’s EPLI provides employers who have potential claims from current, prospective or former employees, with liability insurance that covers damages (including punitive, consistent with Illinois law) and defense costs. The policy provides for consultation with the insured, if desired, concerning selection of defense counsel. Legal counsel is appointed, and damages and defense costs are paid by underwriters according to policy provisions.
This policy comes with a $5,000 or $10,000 self insured retention (SIR) and a choice of limits up to $2 million, including damages and defense costs. For physicians whose practice is primarily in a hospital setting, coverage providing protection for allegation of misconduct made by a third party, such as a hospital employee, is included.
For more information on ISMIE’s EPLI coverage, call 1-800-782-4767 or visit the EPLI Web page.