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Why Buy Employment Practices Liability Insurance?

By January 11, 2015June 8th, 2020Insurance

No business owner would consider going without general liability or property insurance yet an employer is more likely to have an employment practices liability claim than a general liability or property claim. Employee Wide Over 40% of employment practices liability claims are brought against private employers with fewer than 100 employees. A recent survey, 73.5% of companies defended employment related litigation over the last three years mainly including discrimination and wage and hour complaints. The number one area for litigation over the past three years has been labor and employment matters. Employment practices liability provides protections against claims of :

  • Discrimination
  • Harassment
  • Retaliation
  • Wrongful termination
  • Employment related misrepresentation
  • Negligent evaluation, training and supervision
  • Failure to enforce adequate policies
  • Wrongful discipline
  • Wrongful deprivation of career opportunity
  • Negligent violations of law such as the family medical leave act and the uniformed services employment and reemployment rights act
  • Wage and hour claims

As a business owner, you need to protect your company from the unexpected and financially crippling costs resulting from employment – related claims and lawsuits. Employment practices liability insurance protects an employer against claims made by employees, former employees and even potential employees. It covers discrimination (age, sex, race, disability, etc.), Wrongful termination of employment, harassment and other employment related allegations. Coverage can also be extended to cover claims of discrimination and harassment made by third parties such as customers and vendors the policy provides coverage for the costs associated with defending these types of claims and any settlements or judgments that result. Beware ! Your general liability and workers compensation insurance policies does not defend for these type of claims. It is important to compare several different employment practices liability policies because most do not cover wage and hour lawsuits. For more information contact our office

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