Most employers know they can be held legally liable for sexual harassment that occurs in the workplace. Courts have made clear that anti-harassment laws aim to motivate employers to take reasonable, responsible steps to prevent harassment rather than to encourage litigation.
Employers that document and enforce preventive actions are less likely to be held liable for damages. Demonstrating a consistent, reasonable response to complaints is a key part of that defense.
Employers may also consider Sexual Harassment Insurance (Workplace) to help manage financial exposure related to harassment claims.
Employer practices to reduce liability
- A comprehensively written policy against sexual harassment should be in place to show the employer’s stance and commitment to prevention. The policy should define sexual harassment clearly and give examples so employees understand what behavior is prohibited.
- Avoid legal jargon and overly complex language when writing the policy. It should be understandable to the average employee and translated for non-English speakers when needed.
- The policy should identify whom to contact to initiate a complaint, outline the complaint and investigation process including any appeal, and state what penalties apply. It should also make clear that retaliation is prohibited and will be treated as a form of harassment.
- Liability often arises when an employer lacks or fails to follow a complaint process, not only from the harassment itself. Treat every complaint seriously and investigate using a consistent, reasonable process for all involved.
- Ensure new employees receive the policy during orientation and sign an acknowledgement that they have received, read, and understood it.
- Provide ongoing exposure to the policy so employees know it is enforced. Use brochures, newsletters, in-service training, and staff meetings to reinforce expectations.
- Train supervisors to enforce the policy and to recognize that they themselves could be perpetrators. Employers can be strictly liable if supervisors harass subordinates or fail to address harassment they learn about.
One common excuse is that a behavior has been tolerated because others did it; tolerance or inconsistent enforcement increases employer risk. Simply having a policy is not enough—there must be meaningful exposure, consistent enforcement, and a commitment of time and resources to apply the policy effectively.
For coverage focused on legal defense costs and related expenses, consider Sexual Harassment Defense Coverage.
If you want help choosing coverage or implementing policy, talk to your agent.
Frequently Asked Questions
What should a workplace harassment policy include?
A clear definition of prohibited conduct, examples, the complaint process, designated contacts, investigation steps, possible penalties, and a statement prohibiting retaliation.
Do employers need to train supervisors?
Yes. Supervisors should be trained to recognize, respond to, and prevent harassment because employers may be liable for supervisors’ actions or failures to act.
Is signing a policy enough to show compliance?
A signed acknowledgement helps, but courts look for active enforcement and consistent handling of complaints, not just documentation.
Can insurance help with harassment claims?
Insurance products exist that can help cover defense costs and damages, but employers should review policy terms and limits carefully to understand coverage.