As with anything else, an ounce of prevention is worth a pound of cure. California Labor Code 12950 sets forth minimum standards for the prevention of sexual harassment and requires employers to post the latest poster in a prominent place and to distribute an information handout to all employees. A compliance audit of your company's practices may be advisable. Sexual harassment is only one type of employment claim that can have a negative impact on your bottom line. Other types of claims include wrongful termination claims, racial discrimination, age discrimination, and claims under the Americans With Disabilities Act.
Insurance is available to cover any potential claims.
Employment Practice Liability Insurance can cover both judgments and the cost to defend a broad spectrum of employment related claims. Unless you have Employment Practice Liability Insurance, your business is almost always uninsured against employee's claims. A sample General Liability Policy applies to bodily injury or property damage, but excludes bodily injury to an employee. The cost and terms of Employment Practice Liability Insurance are directly related to the quality of your human resources policies and procedures. A compliance audit will be part of the application process.