When Dr. Michael Torres expanded his dermatology practice to include a second location, he envisioned offering top-tier care to even more patients. What he didn’t anticipate was a lawsuit from a former employee who claimed they had been wrongfully terminated. The case dragged on for months, racking up attorney fees and causing disruption to his growing business. Had Dr. Torres secured employment practices liability insurance (EPLI), the financial and emotional toll could have been significantly reduced.
For dermatology practices like Dr. Torres’, EPLI is more than just an extra layer of protection—it’s a necessity in today’s litigious work environment. Let’s explore why EPLI should be a part of every dermatology practice’s insurance portfolio and how it can help safeguard your business.
Employment practices liability insurance (EPLI) provides coverage for legal claims made by employees or job applicants against their employer. This includes coverage for:
EPLI can cover legal defense costs, settlements, and court judgments, sparing your practice from financial strain during employee-related legal disputes.
Dermatology practices, like other medical offices, operate with a unique set of challenges that increase their exposure to employee claims:
Team Diversity
A dermatology office often employs a wide range of staff, from medical professionals to front-desk workers. The diversity in roles can lead to varying expectations and, at times, conflicts.
High-Stress Environments
The fast-paced nature of medical practices can result in misunderstandings or miscommunications that escalate into larger issues.
Employment Law Complexities
Labor laws change frequently, and staying compliant is no small feat. Even unintentional violations can result in legal claims.
Sensitive Claims
Cases involving sexual harassment or discrimination can tarnish a practice’s reputation, making it difficult to regain trust with employees and patients alike.
EPLI provides financial protection for dermatology practices in various situations:
A medical assistant accuses a supervisor of inappropriate comments or behavior. The practice is forced to navigate legal proceedings while maintaining workplace morale.
A receptionist alleges they were overlooked for a promotion due to their age or ethnicity. EPLI helps the practice defend against these claims.
An employee claims they were fired for reporting unsafe working conditions. EPLI steps in to cover legal fees and potential settlements.
A staff member accuses the practice of failing to pay overtime wages or classifies their role incorrectly. EPLI mitigates the financial fallout.
We want to familiarize you with some of the benefits EPLI provides.
Legal battles are costly, even if the claims are baseless. EPLI covers defense costs, settlements, and judgments, reducing the financial burden on practice owners.
Lawsuits involving workplace disputes can harm a practice’s reputation, particularly if they become public. Some EPLI policies include public relations support to help restore trust.
Many EPLI providers offer resources, such as employee handbook reviews and training programs, to help practices stay compliant with employment laws.
EPLI allows practice owners to focus on patient care, knowing their business is protected from unexpected claims.
Without EPLI, dermatology practices are exposed to significant risks, including:
When selecting an EPLI policy, consider the following:
Evaluate the maximum amount the policy will pay for legal fees and damages. Ensure it’s sufficient for your practice size and employee count.
Understand what is not covered by the policy, such as certain types of employee classifications or pre-existing disputes.
Some policies offer extras like HR consulting or legal advice. These can be invaluable for preventing claims before they arise.
Choose an insurer experienced in covering medical practices to ensure the policy is tailored to your industry’s unique needs.
While EPLI provides financial protection, adopting proactive measures can reduce the likelihood of employee disputes:
EPLI is an important component of a well-rounded insurance plan for dermatology practices. By providing coverage for costly and disruptive employee disputes, it helps protect your practice’s financial stability and reputation.
For more information on EPLI and how it can benefit your dermatology practice, contact an experienced insurance provider to explore tailored options for your business.
Founded in 2017, Kastner Insurance Group is a full-service, independent insurance broker based in Lafayette, LA. Our insurance agents specialize in offering a variety of insurance products tailored to individual and commercial needs, making sure clients receive personalized and comprehensive coverage options from a variety of insurance companies/insurance carriers.
With over 43 years of combined experience, the team at Kastner Insurance Group is dedicated to providing expert advice and exceptional service. They proudly serve professional offices and businesses across Lafayette city/parish, Youngsville, Broussard, Baton Rouge, New Orleans, Alexandria, Acadiana, and statewide in Louisiana.
Call us today or visit our website for a customized quote.
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