EPLI Claim Scenarios

Pregnancy Discrimination:
- The clients employee, returning from maternity leave, alleges wrongful termination due to pregnancy-related complications. Despite providing a doctor’s note for her absence, the company terminated her employment. Wow with a new mother, early termination can cause issues. This case highlights the legal obligations of employers to provide reasonable accommodations for pregnant employees under anti-discrimination laws such as the Pregnancy Discrimination Act (PDA). The substantial settlement and defense costs underscore the seriousness of the allegations and the potential liability for employers in such cases.
Disability Discrimination:
- In this case, a manager alleges wrongful termination based on disability discrimination. The employer failed to engage in the interactive process to provide reasonable accommodations and terminated the manager while on medical leave. Make sure to look out for disability discrimination within your business. Additionally, the employer’s failure to disclose the manager’s status during a health care plan application process further exacerbated the situation. This example underscores the importance of employers’ duty to reasonably accommodate employees with disabilities under the Americans with Disabilities Act (ADA) and similar state laws, as well as the potential financial ramifications of non-compliance.
Sexual Assault:
- Allegations of sexual harassment and assault by multiple supervisors in a warehouse environment resulted in a significant settlement and defense costs exceeding $2.5 million. Wow that is a large settlement, we want to make sure that you have EPLI coverage in case something like this happens to your business. The case highlights the severe impact of workplace sexual harassment and assault on victims and the legal obligations of employers to maintain a safe and harassment-free work environment under Title VII of the Civil Rights Act of 1964. Additionally, the subsequent retaliation against the victim underscores the importance of robust anti-retaliation policies and enforcement mechanisms.
Sale of Assets & Bankruptcy:
- This case involves allegations of breach of fiduciary duty and fraudulent transfer during the sale of assets in bankruptcy proceedings. Funds and fiduciary duty with them are big with companies. The accusations include using company funds for personal gain, overpaying for office space, and improper asset transfers. Such actions can lead to significant legal and financial consequences, as demonstrated by the substantial settlement and defense costs incurred. This example highlights the importance of transparency, accountability, and adherence to fiduciary duties in corporate transactions, especially in financially distressed situations.
Claim by Founders:
- Founders of a medical device company allege breach of employment contracts following aggressive actions by new board members appointed during a Series “B” Stock Offering. The case underscores the challenges and risks associated with corporate governance changes and conflicts of interest in startups and emerging companies. The substantial defense costs incurred, despite the lack of coverage for amounts owed under employment contracts, illustrate the complexities and costs of defending against such claims.
Wrongful Termination (1):
- An employee’s termination following a business dispute with an independent contractor’s brother raises allegations of retaliation. Despite the company’s assertion of other reasons for termination, the settlement and defense costs exceeded $200,000, indicating the potential risks and costs associated with retaliation claims under employment laws.
Wrongful Termination (2):
- Allegations of wrongful termination based on age and threats to disclose violations of non-profit laws highlight the potential legal risks associated with termination decisions perceived as retaliatory or discriminatory. The settlement and defense costs exceeding $120,000 underscore the financial implications of defending against such claims, even when the underlying allegations may seem unsubstantiated.
Religious Discrimination:
- The refusal to hire an individual based on their Mormon faith raises allegations of religious discrimination. Despite the relatively lower defense and indemnity costs, this case underscores the legal obligations of employers to refrain from discriminatory hiring practices based on religious beliefs under Title VII and similar state laws. As an employer we always want to make sure we hire based on the individual and not their religious beliefs.
Quid Pro Quo:
- Allegations of sexual harassment and retaliation following the termination of a sexual relationship with a manager highlight the pervasive issue of workplace harassment and the legal obligations of employers to prevent and address such misconduct under Title VII and related laws. The substantial defense and indemnity costs emphasize the financial consequences of failing to adequately address harassment complaints.
Retaliation:
- Allegations of wrongful termination in retaliation for testifying on behalf of another worker’s case underscore the importance of anti-retaliation protections under employment contracts and relevant laws. The total defense and settlement costs exceeding $120,000 illustrate the potential financial liabilities associated with retaliation claims and the importance of robust compliance mechanisms.

These examples provide insights into various aspects of employment-related claims, including discrimination, harassment, retaliation, and wrongful termination, highlighting the legal obligations of employers and the potential financial risks of non-compliance. As

March 18, 2024March 18, 2024

Accounts Receivable Insurance | Business Insurance in Hinsdale

Many businesses are unaware of or have never heard of Accounts Receivable Insurance. This insurance provides unexpected circumstances that may arise if the business doesn’t get paid by its customers.

Suppose your business provides service to a client or customer and once this service is completed, the customer is to provide you payment. However, the client does not submit payment due to hardship or goes out of business or declares bankruptcy. This can create a big issue for your business.

In situations as these, the accounts receivable insurance steps in and covers a percentage of the outstanding balance or receivables.

The accounts receivable insurance also enhances cash flow and helps maintain a steady and predictable cash flow. When payments come in on time, the businesses can take care of the expenses and submit their accounts payables on time.

Businesses also rely on steady income for growth, operational expenses and to meet any financial obligations. If the accounts receivable is affected, it affects the business in several ways. Therefore, accounts receivable insurance enhances cash flow for the business.

Also, when a business has accounts receivable insurance, it helps the business have easier access to financing. Lenders see accounts receivable insurance as a positive element when considering giving loans or credit lines. Insurance lets the lender feel protected and the business a lucrative option.

Having the safety net of accounts receivable also allows the business to look into growth opportunities. It allows the business to feel protected and confident. It helps them reach larger clients, offers better credit terms, which helps them grow and increase their sales.

If a large client takes its business elsewhere or simply terminates the contract, the business has a softer blow then the hard impact of losing a large client.

Most importantly, the business owners can have a peace of mind knowing that if circumstances change with their clients, the outstanding payments are covered with the accounts receivable insurance.

Lastly, the accounts receivable insurance can be modified to cover your specific business needs. You can tailor the coverage to the industry challenges and to address customer dynamics in its line of business.

Accounts Receivable Insurance not only provides a safety net but also helps business credibility, helps it achieve growth and financial stability along with protecting the business when the need arises to cover the impact of non-payment.

If you are a business owner and are seeking information on accounts receivable insurance, Karstens Financial can tailor the coverage to address your business needs.

At Karstens Financial, we assist you in customizing your accounts receivable insurance. One policy can cover multiple customers, or you can apply coverage to only your largest. Contact our representatives to provide you with excellent service at Karstens Financial.

March 18, 2024March 18, 2024

Estate Planning | Financial Management in Hinsdale

Planning for estate is very similar to creating a road map for what happens to your belongings and your loved ones when you are no longer around to take care of them. Estate Planning is basically a plan to execute your wishes. These plans are to ensure that your family and property are taken care of in the way you wanted. It eliminates guess work and removes any misunderstandings between family when you are not present.

Estate planning is simple, it starts by you listing all the items that you own, such as your home, funds, savings, belongings, art, jewelry, and things of value or essential to you. It also includes items that will help you pass on your legacy or simple items that someone would love to have when you are no longer present in their life.

Once items are listed, you then decide on who receives these items when you are not around. Many people decide what they want to give to their children and their friends. You may include something that has a value or was cherished by them to gift them.

Estate Planning also helps you choose care takers for your children, family and pets. This helps you be at piece that your family is taken care of. Estate Planning is basically making a long-term plan for when you are no longer with your family. It is like having a set of guides or instructions for your family to see your wishes are followed or to remove any misconceptions they may have in making any decisions.

It also allows you to set a person in charge that you trust when you can’t make any decisions for yourself. This person will act on your behalf according to your instructions. This avoids any confusion or disagreements among family members as to what to do not only with your things but also with your instructions – a plan is put in place.

Estate planning also reduces tax liability on your family when they inherit funds. It helps your family and loved ones get the most of what you have left behind for them.

Estate planning can also include your funeral and burial instructions. It can outline your preferences and any special requests or arrangements you may have wanted.

Estate planning is a proactive way to ensure how to control your legacy and your hard-earned investments and their distributions. Consulting with our financial advisors at Karstens Wealth in Hinsdale will help you navigate the complexities of estate planning. With our financial advisors, you will have guidance for making the decisions for unexpected circumstances.

Karstens Wealth in Hinsdale offers guidance and will share their expertise with the entire process of estate planning. Having a plan in place also helps avoid any probate delays. Probate is the legal process of processing the will. The estate planning makes this easier and reduces costs and wait time for distribution of assets. It helps when a family is waiting for inheritance and are in need for financial access.

Estate planning makes the entre process distribution of assets easier and smoother. This is usually the time that family and your loved ones are in most distress and having guidance smooths the process.

Estate planning for business also allows you to choose your successor to run the business and continuity of your legacy. It allows you to have business succession according to your plans. Another area that can cause a lot of confusion will receive complete guidance and place the successor in its place to run the business.

It is simple and easy to set this plan and Karstens Wealth can help you navigate this process with its financial advisors giving you step by step guidance. Call Karstens Wealth and reduce all the complexities of Estate Planning and eliminate the guesswork from your family.

March 18, 2024March 18, 2024

Retirement Plans | Financial Management in Hinsdale

Retirement planning involves setting aside money for all your financial decisions now so you don’t have to worry about your lifestyle when you stop working. When planning to make these decisions think of how you can enjoy a comfortable and worry-free life when you are not working.

Having a retirement plan is the last thing on everyone’s mind but when you pitch something aside steadily and even with small contributions, you can have a good savings for retirement.

You can set up retirement saving in several ways, such as with an employer sponsored plan, social security, individual retirement account, pension plans, investments, health saving accounts, annuities…the list goes on.

You an start by asking your employer if they offer retirement plans such as 401(K), 403 (B) for non profit employers, Simple e, American funds, these are all ways you can contribute a portion from your salary.

Most employers will match the retirement plan based on your contribution and it can grow rapidly without you worrying about it.

Many of you have heard the term Social Security benefits. This is a government program that provides monthly income to retirees. The amount you receive is based on the amount of your average earning and when you start receiving the benefits.

Individual Retirement Accounts help you save and are typically like a savings account but with tax advantages. Many of you know them as IRAs and there are two types of IRA, Roth IRA and Traditional IRA.

Investments such as stocks and bonds or mutual funds grow over time. Its important to start these earlier as they typically take time to grow and if you start earlier, you can grow more.

Real Estate is always looked as an opportunity of investment but many never see it for retirement. Real Estate can offer rental income and can be utilized to cash it out and use funds for a better investment.

An important part of planning for retirement is also to have a savings account. This will help when there is a emergent need for expense. This way, safety net can be the savings account and will prevent you from pulling out from your retirement savings.

Setting up retirement plans or understanding what is needed when you retire can seem complicated. Our financial advisors, at Karstens Wealth located in Hinsdale and Oak Brook can offer exceptional services in explaining retirement planning based on your individual needs and helping you understand the steps for your retirement planning. We use cutting edge technology and clients’ needs in exploring, offering than implementing best solutions.

March 18, 2024March 18, 2024

Net Worth Analysis | Financial Management in Hinsdale

A net worth analysis provides an overview health of ones financial health. You basically do this by evaluation the overall wealth or value of what they own and what they owe (debt). The net worth is the value or amount that you are left with if you were to pay off everything after selling all that you owe.

Calculating the assets is taking the monetary value of any of the following that you own: cash and bank account, real estate (Home and any rental properties), Investments such as stocks, bonds, retirement accounts, and personal property such as jewelry, vehicles, collectibles.

You will take the sum of all your assets and subtract all your liabilities such as mortgages, auto loans, student loans, credit card debts: total assets – total liabilities = Net worth

A positive value would mean that you have good financial health while a negative value means that you have financial challenges.

Managing debt means managing and reducing liabilities and increasing net worth. It’s important to regularly monitor so you can make informed decisions. It helps you focus on reducing liabilities and managing lifestyle choices.

If you are planning on purchasing a home or an investment property, analyzing your net worth may help you assess your financial capacity to handle expenses and unplanned emergencies.

Karstens Wealth is located in Hinsdale, our financial advisors can help you in reviewing your net worth to help you gain a clear understanding of your financial standing. We can guide you in making informed decisions, plan towards retirement, save towards education or major purchases, build and protect wealth.

Karstens Wealth’s financial advisors can help you evaluate your net worth, help you prepare for emergencies, invest for financial goals and retirement.

March 18, 2024March 18, 2024

Investment Management | Financial Planning in Hinsdale

Investment Management is like having financial experts or investment managers guide you in making smart financial decisions to grow and protect money. The financial advisor will guide you in making decisions about investing money, how to allocate and where to invest and mainly protecting the invested capital.

The investment advisor will first start by understanding what your financial goals are, retiring comfortably, buying a house, or sending your kids to college. The process will start with understanding your goals and objectives.

Next, would be understanding how the funds, bonds, stocks need to be allocated. This process is called asset allocation which is based on risk tolerance, time span and financial goals.

The investment manager will create a portfolio based on market trends, potential returns, and specific investments that they believe will give you best return.

Reducing risk is the most crucial part an investment management. The financial advisor will diversify your investments to reduce risks. They will adjust portfolios based on market conditions and replace underperforming investments.

This is typically known as portfolio monitoring and rebalancing as the financial advisor makes adjustments to the asset allocation.

Investment managers stay informed about economic trends, market trends, and geopolitical events to ensure investments align with the financial strategy.

Clients are regularly informed about the performance of their investments. If changes in the market occur, clients are informed when adjustments are made to their portfolio.

The investment managers are obligated to act in the best interests of their clients as this is their fiduciary duty. They put their clients interests before their own and provide a unbiased advice.

At Karstens Wealth, our investment managers, located in Hinsdale, offer their expertise in navigating the complex financial market. Our goal is to help you navigate and optimize investment returns based on your financial objectives or financial security.

Karstens Wealth’s ultimate goal is to help you reach your destination – we help you get to your journey that is well planned.

At Karstens Wealth our investment management tailor a plan to fit your unique journey and guide you toward your financial goals.

February 5, 2024February 5, 2024

What is a Business Owner’s Policy? | Business Insurance in Hinsdale and Orland Park

Business Owners Policy, also known as BOP, is like combo deal with all in one at a great deal. It comes with two options – general liability and property insurance – into one package.

BOP covers your workspace, such as an office, a shop or even a home office. If something unexpected happens, like a fire or a pipe that may burst, the Business Owner’s Policy steps in to help with repairs.

Business Owners Policy also protects and safeguards against the “Ooops” moments. If you accidentally damage someone’s property or someone slips in your office. General liability insurance, part of the Business Insurance Policy duo, is your go-to.

The Business Owners Policy is also budget friendly. By bundling, you often save compared to getting coverages separately. BOP helps you save.

Also, in case there was ever a fire and you had to shut down your current location temporarily. Business Owners Policy or BOP has interruption coverage. It helps with the ongoing expenses, like rent and salaries, while the business is shut.

BOP also is easy to remember and combines all in one so it’s easy for you to get all the coverage needed without having to understand what you need. It’s insurance lingo that just covers your business without having to decode.

The Business Owners Policy keeps your day-to-day operations running smoothly and it simplifies your coverage needs and lets your focus on what you do best, keeping your business running.

February 5, 2024February 5, 2024

Professional Liability Insurance or Malpractice Insurance | Professional Liability Insurance in Hinsdale

Professional Liability Insurance or malpractice insurance helps when a professional like a doctor or a lawyer makes a mistake of oversight that causes harm to a client or a patient.

If there was a lawsuit because of a mistake or negligence, Professional liability is your legal defense. The professional liability acts as your legal defense shield and it covers the costs of hiring a lawyer, legal proceedings, and settlements, giving you the ability to fight without really being there.

Professional Liability insurance or malpractice insurance provides compensation to the patient or the client. If you are a healthcare professional, and a patient suffers harm due to a mistake. The Malpractice insurance steps in to compensate the patient for the medical expenses and the costs resulting from the error.

Professional Liability protects you against allegations. Even if you are innocent, it’s hard defending yourself in court and can be financially draining. Professional liability insurance covers the legal costs, ensuring you have the resources to prove your innocence and protect your professional reputation.

While malpractice insurance or professional liability insurance is commonly associated with healthcare or for lawyers, it is commonly utilized by accountants, consultants, and other corporate professionals. Professional liability insurance covers you when you need someone to defend you during an unexpected event.

February 5, 2024February 5, 2024

Which Industries Need General Liability | General Liability in Oak Brook and Hinsdale

In the business world where accidents are prone to happen, slips and falls, tools slips, coffee spills, and unexpected mishaps unfold, general liability insurance is likely the safety net for all.

General liability insurance is not just for big corporate buildings, its for everyday local business that need the support more when accidents take place.

Here are some examples of industries that need the General liability insurance.

-Mom and Pop shops: the small bakeries, the flower shops, the small barber shop. General Liability insurance is their safety net when a customer accidentally trips over a welcome mat or if a display topples and causes some damage.

-Retail Stores: The local boutique shops, the electronic store or a repair shop that you typically go to. General liability insurance keeps these places safe when and if one of the displays falls off and lands on a customer.

-Construction and Contractors: Whether you’re the single handy man or managing a construction crew, accidents on the job can happen. General liability insurance is like a hardhat for your business. It protects against injuries and property damage that might occur during the busy construction project.

-Service Professionals: Whether you are a consultant, accountant, designer or meeting clients face-to-face, all come with a set of possible risks. General liability insurance acts as your security guard to keep you safe from claims of property damage or bodily injury that may happen during a consultation.

-Restaurants and Cafes: From hot sizzling pans to slippery mopped kitchen floors, the restaurant is full of potential risks. General liability is ready to cover the unexpected spills and slips, keeping your business running smoothly.

-Event Planners: Planning the perfect wedding or a corporate event, General liability insurance is the emergency kit that will step in right away if someone trips over the string of lights or a booth that can take an unexpected drop.

-Health and Wellness: For fitness trainers or wellness centers, having people moving in your space comes with some risks. General liability insurance is like a protection mat that can help your business when there is an injury or accident during the fitness session.

As you see, General liability insurance is for any and every type of industry that you can imagine. General liability insurance keeps a safety net that helps you keep your business safe while if life throws a curveball at you, there is General Liability insurance to help you catch it. In the business world where accidents are prone to happen, slips and falls, tools slips, coffee spills, and unexpected mishaps unfold, general liability insurance is likely the safety net for all.

General liability insurance is not just for big corporate buildings, its for everyday local business that need the support more when accidents take place.

Here are some examples of industries that need the General liability insurance.

–Retail Stores: The local boutique shops, the electronic store or a repair shop that you typically go to. General liability insurance keeps these places safe when and if one of the displays falls off and lands on a customer.

–Construction and Contractors: Whether you’re the single handy man or managing a construction crew, accidents on the job can happen. General liability insurance is like a hardhat for your business. It protects against injuries and property damage that might occur during the busy construction project.

February 5, 2024February 5, 2024

General Liability | Commercial insurance in Hinsdale

Why is it important to have insurance for your business?

Take this scenario: Imagine you are an owner of a small business and a customer walk into your business and suddenly slips and falls due to the crazy weather that made the floor slippery from all customers walking in.

If the customer resulted in an injury, you would suddenly become responsible for medical bills, potential legal fees, and the compensation claims could become overwhelming, threatening not just to your business but to your livelihood as well.

This is where the general liability insurance comes in as having a safety net for your business:

-Protection against slip and falls or accidents in general: General liability covers for medical expenses, legal fees, and damages if someone is injured at your business site.

-Customer trust and reputation: When you are working on a customer’s property and while servicing, you damage the property. General Lability again provides the cost of replacing or repairing the customers property which could have put your business in jeopardy.

-Legal Support: Facing a lawsuit can be emotionally and financially draining. General liability insurance provides not just financial but also legal support. It helps you navigate through the legal battel so you can continue to focus on your business.

-Peace of Mind: As a business owner, you are already busy taking care of your day-to-day business and its challenges. Having general liability insurance can provide you with the peace of mind from unforeseen circumstances.

-Continuity of Business: General Liability helps form a safety net from lawsuits, property damage and allows your business to continue without putting the business at risk or bankruptcy.

Ultimately, General liability provides a safety net that allows you to pursue your business growth and dreams without constantly fearing about the unexpected.