Employment Practices Liability Insurance
From the moment you start the pre-hiring process until the exit interview, you are vulnerable to a lawsuit. As a result, your business should take a hard look at whether it can afford to defend itself against accusations of alleged wrongful employment practices. If not, there is an insurance solution called Employment Practices Liability that protects against wrongful termination, discrimination, (age, sex, race, disability, etc.) or sexual harassment suits from your current, prospective, or former employees. This coverage applies to directors, officers, and employees, and can sometimes extend to third-party liabilities.
Why choose Employment Practices Liability Insurance?
According to researchers, three out of five employers will be sued by a prospective, current, or former employee while they are in business. While many suits are groundless, defending against them is costly and time consuming.
Employment Practices Liability Insurance provides protection from the following wrongful employment practices:
- Actual or Alleged Wrongful Dismissal, Discharge or Termination
- Employment-Related Misrepresentation
- Employment-Related Libel, Slander, Humiliation, Defamation or Invasion of Privacy
- Wrongful Failure to Employ or Promote
- Wrongful Deprivation of a Career Opportunity, Wrongful Demotion or Negligent Evaluation
- Wrongful Discipline
- Vicarious Liability for Intentional Acts
- Punitive Damages
- Coercion or Humiliation in Relation to Race, Marital Status, Gender, Age, Physical and/or Mental Impairments, Pregnancy, Sexual Orientation and Any Other Protected Class Established by Federal, State and Local Statutes
Many policies offer the following inclusions and add-ons:
- Consultation, HR Assistance and Other Risk Management Consultative Services.
- Coverage for Defense Costs Outside the Policy Limits (for qualifying risks).
- Third-Party Liability Coverage (for qualifying risks).
- Volunteer Workers Can Be Added as Additional Insureds.
- Extended Reporting Periods May Be Added.