As a result of the Coronavirus pandemic, many businesses are operating in a new normal. That may include remote workers, cleaning and protecting efforts, decreased or increased production, furloughs—all depending on the industry and sometimes region of the country.
Our risk management professionals have analyzed the market and are focusing on areas where management liability could be threatened as a result of the pandemic and its fallout. That employee working from home on an unsecured network? The laid off employees that happened to all be over the age of 40? Shareholders upset because of the perceived lack of due diligence or general deterioration of the financial condition? Below are some Employment Practices Liability (EPL), Directors & Officers liability (D&O), and Errors and Omissions (E&O) quick checks for businesses to review now and determine what they can do to reduce or even avoid such claims.
Among the many different types of fallout from the COVID-19 outbreak are the potentially significant implications for corporate liability and D&O insurance, including the types of claims that may arise and the impact the pandemic may have on D&O insurance policyholders and their insurers.
Lawsuits have already been filed alleging that companies and their directors breached their duties or violated securities laws in the context of COVID-19 exposures. This is further complicated by the securities class action lawsuits that were already trending upwards prior to the pandemic (see our article, Is the drastic increase in securities class action lawsuits the new normal?). Organizations should consider the following to help avoid or mitigate their risk:
Contact us with questions or for guidance on your management liability coverage.
Heather offers practical guidance and helps employers find solutions to employment law and compliance matters.
Heather educates and advises employers on all aspects of employment law, including compliance with state and federal laws, leaves of absence, discrimination, harassment, accommodations, discipline and discharge, wage and hour obligations, unfair competition, and other issues that arise in the workplace. In addition to Heather’s employment counseling, her background includes nearly a decade of litigation experience. Her prior experience includes litigating for a regional insurance company, business disputes, and employment.
On May 11, 2014, the governor of Minnesota signed the Women’s Economic Security Act (WESA), a bill that will require Minnesota employers to make dramatic changes to their employment policies and practices.
While WESA directly impacts employers who conduct business in Minnesota, the changes follow plans by federal and local governments to expand legal protections for women and other employees. For this reason, employers in other jurisdictions should pay close attention to these national and state law trends.
“The only thing that is constant is change.”
Turns out that dusty old Greek philosophers occasionally say profound things (Heraclitus also said that a man’s character is his destiny). And since the Greeks are considered the fathers of democracy and were responsible for no small number of laws themselves, it seems an appropriate departure point to talk about the constantly changing landscape of employment laws.
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