What Business Insurance lessons can you learn from Starbucks and a one armed barista? You’d be surprised to find out. According to the Insurance Risk Management definition, Employment Practices Liability Insurance (EPLI for short) is a business liability insurance policy that covers “wrongful acts arising from the employment process.” Discrimination is one of the more common claims alleged under these policy types. Can your business afford to go without this coverage? Eli Pierre’s lawsuit against Starbucks may make you think twice.
According to the Insurance Journal, Pierre, “a man born with half a left arm is suing Starbucks for failing to hire him as a barista.” In the suit, Pierre claims that the “store manager told him that the coffee flavoring syrups were placed high up and a one-armed man couldn’t work there.”
Starbucks disputes the story, but suit further claims that Pierre, a former bartender” was cpabable of doing the job but was never given a chance to fully explain his capabilities or “possible accommodation as required by California state law.”
For a company of Starbucks’ size, this lawsuit is merely a small blip on the radar. What about your business? The EPLI policies is designed to transfer the burden of defending your business in case of claims of this nature. Generally, EPLI policies are very inexpensive and can be added to many business owners insurance policies.
If your business sued for wrongful termination, discrimination, or sexual harrassment, do you have enough set aside to pay the legal costs associated with a discrimition suit? If the answer is no, you and your business are good candidates for Employment Practices Liability Insurance. Next time you’re looking for a business insurance policy, make sure you get a quote with this coverage included.