Good Risk Management and the EEOC

Good Risk Management and the EEOC

If you are an employer, the acronym EEOC (Equal Employment Opportunity Commission) probably makes you tremble.  If not, then perhaps it should.  EEOC is the agency responsible for investigating claims of unfair employment practices.  With most employers facing an aging work force and news headlines shouting statistics about unequal pay between men and women, there is plenty to make the EEOC stand up and take notice.  Over the last few years, we in the insurance world have seen a dramatic increase in claims related to employment practices.  Contributing factors are an economic downturn and higher unemployment rates, which make employees more likely to fight back if they lose their jobs.  Employees are also better educated on matters of discrimination, harassment, and wage laws.

So what is a concerned employer to do?  A two-pronged approach of risk management and insurance is needed.  Employment Practices Liability Insurance provides coverage in the event that a claim of unfair practices is made against your company.  However, often these claims come with negative news coverage that can harm your business, and insurance will only pay for defense and settlement costs.  Therefore, the best defense is to have a risk management program in place that will keep problems from arising. A good risk management program includes having policies and procedures in place and then following your own procedures.  The Business Solutions Team at Clark-Mortenson can assist you in setting up policies that comply with state and federal employment regulations to help your organization help you Be Ready for Anything.

If you have questions on what things your business needs to know in order to be compliant with EEOC rules and regulations, give us a call at 877-352-2121 or email us at

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