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Employment Practices Liability Insurance

From the moment that you start the pre-hiring process until the exit interview, you are vulnerable for a lawsuit. As a result, your business should take a hard look at whether it can afford to defend itself against alleged wrongful employment practices accusations. 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, including:

• Harassment
• Discrimination
• 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.

This Coverage Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

Content © 2009 Zywave, Inc.

To learn more about our Employment Practices Liability coverage and how Gregory & Appel Insurance can help protect your business against liabilities, please contact us below or at 317-634-7491.