As an employer, your employees are your most valuable asset. Your workforce is also one of the hardest types of risk to control. You might have insurance to cover work-related injuries and customer-related exposures, but you could also benefit from Employment Practice Liability Insurance. This coverage helps protect your business from financial loss in situations related to specific employee claims.
What Does Employment Practices Liability Insurance Protect Against?
Employment Practices Liability coverage is extensive. It may cover claims of:
- Wrongful termination
- Discrimination
- Sexual harassment
- Retaliation
- Invasion of privacy
- Failure to promote
- Defamation
- Deprivation of a career opportunity
Be sure to read the terms and talk with your independent insurance agent to understand the exclusions in your policy. Some of the most common exclusions to this type of policy include property damage, bodily injury and intentional or dishonest acts.
Who Should Have Employment Practices Liability Insurance?
Many of today's business owners are at risk of the claims listed above if they have employees. Even if you believe these claims would not or could not happen in your place of business, you should have coverage, since we live in a highly litigious society.
In many cases, this type of insurance is sold as a stand-alone policy. However, it can also be sold as a part of management liability package coverage. In this case, it is often wrapped into other policies. If you operate a business with employees, it is important to learn if you have this coverage in place or, if not, to obtain the proper coverage. A simple lawsuit for a sexual harassment claim can cause your business significant damage and loss.
If you are unsure if you need Employment Practices Liability Insurance or you are concerned about your specific needs for other types of employer-related plans, talk to your insurance agent. You should never assume you have a specific type of coverage; it’s better to find out with certainty.