Hannah had thought she had seen it all in her 35 years working at the church in Tyler. She had survived multiple pastors leaving, church members being mad about things that don't really matter, and even a couple of building campaigns that almost put the church out to pasture. But when the process server showed up with a lawsuit, Hannah was floored. This was something she never thought she would see.
The church had to let an employee go earlier this year, and now that former employee is suing the church. Things like this are not supposed to happen to churches, especially here in East Texas. This unexpected legal battle has created stress and uncertainty for Hannah and everyone in the church leadership. They are now faced with the challenge of navigating the lawsuit while ensuring the church's operations and mission are not disrupted. Nevermind the defense costs that go along with it.
As the frequency of and costs for lawsuits has grown all over Texas, understanding and securing Employment Practices Liability Insurance (EPLI) has become more important than ever. Even for churches like Hannah's as it can provide much-needed protection and peace of mind from needless employee-related lawsuits.
What Is Employment Practices Liability Insurance (EPLI)?
Employment Practices Liability Coverage is a specialized form of insurance that protects business owners, including churches, from claims made by employees or former employees who believe their rights have been violated. EPLI covers a wide range of employment-related claims, such as wrongful termination, discrimination, sexual harassment, and invasion of privacy. Legal liability can be established or denied once an employee claim has been made, and your church can rack up sizable defense costs in making that determination. Which is what Hannah and her church leaders were finding out now. As a result, Hannah is discovering why this coverage is essential for churches to safeguard against the financial and reputational damages that can arise from employment disputes.
Importance Of EPLI For Texas Churches
For Texas churches, EPLI is an invaluable tool in protecting against a variety of employment-related claims. Churches are unique in their operations and the nature of their staff relationships, making them susceptible to specific risks. Traditional employment issues such as wrongful termination, discrimination, sexual harassment, negligent employee evaluation, and wrongful deprivation of career opportunities cross many types of commercial insurance. Since churches and religious institutions are no longer immune to these headaches, having EPLI ensures that the church can defend itself against such claims. When employment decisions are made, this can provide financial support for legal fees and settlements if it is deemed necessary.
Unique Risks Faced By Churches And Religious Organizations
Churches and religious organizations face unique risks concerning their employees. Issues such as wrongful termination of pastors or staff members, discrimination in hiring based on theological alignment, and allegations of misconduct or abuse are particularly sensitive and can lead to significant legal challenges. These risks underscore the importance of having comprehensive coverage, which includes this special type of liability insurance, to protect the church and its mission.
Benefits Of Having EPLI For Texas Churches
Since EPLI is not typically included as a base coverage on a standard church insurance policy, this additional coverage needs to be added. The benefits of having sufficient coverage for Texas churches go beyond having an insurance company pay for any judgements or settlements. This liability coverage provides protection against claims of discrimination and other workplace issues such as an invasion of privacy. Churches can protect against financial losses that come just from defending against employment-related lawsuits. Letting the insurance carrier handle the financial strain that comes from the devastating impact of these claims on their operations and allows folks like Hannah and her team focus on their reputation.
Understanding Wrongful Termination
Wrongful termination is the most common form of legal claims where employment is involved. It refers to the illegal firing of an employee, either in breach of contract or in violation of employment laws. As Hannah and her church were finding out with the lawsuit. For churches like Hannah's, understanding the implications of wrongful termination is critical. These claims can arise from various situations, including perceived discrimination or unfair treatment and the risk of claims falls on the perception of the employee. Protecting against wrongful termination claims is a key component of EPLI, ensuring that churches can manage these risks effectively.
Common Reasons For Wrongful Termination Claims In Churches
Wrongful termination claims in churches often stem from issues such as failure to adhere to confidentiality agreements, lack of proper documentation, and subjective decision-making without clear, factual bases. It's important that employment practices are transparent and well-documented before you bring a new employee onboard. Having an employee handbook and clearly defined procedures can help mitigate the risk of such claims. This was part of what tripped up Hannah's church.
Coverage Offered By Employment Practices Liability Insurance
EPLI offers coverage for a range of legal issues. While most churches never think that they could be accused of anything, the types of coverage include discrimination, harassment, wrongful termination, and other employee-related lawsuits. This coverage helps Texas churches focus on their mission and ministry rather than potential claims made against them from regular church activity. This comprehensive protection ensures that churches are covered against the most common and potentially damaging employment-related claims.
How To Get EPLI Coverage For Your Texas Church
Obtaining EPLI coverage for your Texas church is not difficult in most cases. Working with an experienced church insurance specialist who understands the unique risks and needs of religious organizations will allow you to navigate the process easily. These experienced independent agents can help you find additional coverage through your main Texas church insurance policy or using a separate policy to cover any gaps that exist today. The key is assessing your church's specific situation and recommending the appropriate coverage options that are available.
Working With Insurance For Texans To Get Coverage
Insurance For Texans specializes in helping Texas churches protect themselves with customized insurance plans. Our goal is that your policy coverage matches the scope of your church's ministries, activities, and property needs is essential. TRUE Texas Church Insurance is dedicated to evaluating your unique circumstances and matching them with the right insurance policy to provide comprehensive protection.
Hannah's situation in Tyler highlights the critical need for churches to secure the right insurance coverage to protect against employment-related claims. Click the button below to learn how TRUE Texas Church Insurance can protect your church from employment-related claims, ensuring that your ministry can continue to thrive despite the challenges.