Employment Practices Liability Insurance

Every business that hires employees should consider purchasing an employment practices liability insurance policy. This type of insurance protects your company from lawsuits arising from wrongful employment practices.

Protection Under an Employment Practices Liability Insurance Policy

Even if your Human Resources department unknowingly breaks the rules or regulations regarding hiring, termination or any other aspect of employment, your company could be responsible for any claims made against it.

Some of the claims filed under this policy include the following:

• Discrimination is hiring practices or during employment
• Sexual harassment
• Wrongful termination
• Retaliation
• Invasion of privacy
• Failure to promote
• Defamation of character
• Deprivation of opportunity for a career
• Negligent evaluation

This policy covers all staff members from the directors and officers to management down to the average employee. As you can see from the list, employees can accuse a company of all kinds of wrongdoing in employee relations. If they file a claim against the company or initiate a lawsuit, your insurance policy can fight for your company.

If any of the accusations are found to be accurate, the insurance provider will pay out for the claim based on the amount of coverage purchased. If you don’t have this type of insurance, you may be forced to pay out of pocket in a lawsuit if the plaintiff is awarded compensation.

Many times, employment practices liability insurance is part of a management liability package. A company may purchase the entire package to cover the business in a variety of situations.

No matter the size of your business, the industry your company is in or the number of employees you have on staff, you should consider purchasing this type of insurance policy. You never know when someone will unwittingly violate a regulation or when an action may be misconstrued. Protect your company by purchasing insurance that will cover you if a claim is made against you. Contact us today to find out how much coverage you need for your business.