Real Canadian Alleged Retaliation Claims Explained
There are many reasons why an employee may decide to sue their employer. From discrimination or harassment to wrongful termination to sexual harassment, without comprehensive insurance, any business could be exposed to costly and complex risks.
Related Matters: Canadian Human Rights Commission: What is discrimination?
And while your organization diligently follows all regulations outlined in the Canadian Human Rights Act and the Employment Equity Act, liability insurance can provide additional protection.
Alleged Retaliation Claims – How Employment Practices Liability (EPL) Insurance Responds
As part of their ongoing “Control the Outcome” series, Chubb Insurance Company of Canada shares the following example of how their employment practices liability coverage is supporting an insured company by responding to alleged retaliation claims.
“An associate in a law firm created an internal diversity council whose purpose was to make members of protected classes in the law firm feel included, attract and retain diverse employees, and educate firm employees about the benefits of workplace diversity in general.
During the months after she formed the council, the associate received fewer case assignments from partners and was not invited to client development events. Her billable hours declined, and her annual bonus was much smaller than the previous year. During a casual hallway conversation between partners, one partner nodded toward the associate and commented that she was involved “in that diversity thing.”
The associate sued the law firm for $2 million, alleging retaliation for forming the diversity council. After incurring more than $150,000 in defence expenses, the law firm settled for approximately $250,000.” 1
Related Matters: Canadian Human Rights Commission: Organizations and Businesses: I want to know my obligations
An ALIGNED advocate can help you select EPL coverage for your business that will respond in the event of the alleged retaliation claims situation.
To learn more about EPL coverage, talk to one of our advocates today about how we can help you secure the best products, services and solutions for your business.
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Sources: Canadian Human Rights Commission 1 Chubb Specialty Insurance – Private Company Solutions: Claims Examples