Employment Practices Liability Insurance 101

Will Workers’ Compensation coverage protect your company in the event of a wrongful termination allegation?  NO!  Will your business owner’s insurance cover defense costs if one of your employees is accused of harassing a customer? Most likely, NO.  While some business owner’s policies now provide a sublimit for employment practices liability claims, typically this does not extend to third party liability which is what this claim scenario is talking about.    Does your professional liability insurance policy cover you if someone feels discriminated against in the workplace?  Again, NO!  A separate policy is needed to protect your business against employee related claims that are not related to bodily injury.  Employment practices liability policies can be tailored to fit the needs of your business providing limits you need for expenses and even covering your subcontractors in some cases.  Give our office a call if you would like more information about this type of policy. 

Employment Practices Liability Insurance
This is not part of workers’ compensation. If you only carry workers’ compensation insurance you are not covered for suits arising from employee allegations of wrongful termination, discrimination, retaliation or EEOC claims. If you do not have this coverage you should be worried.
Think you will never have a claim? 30% of all civil suits are employment related.
Think your company is too small, that all of your employees are like family? 40% of employment practices liability suits are against companies with 100 employees or less.
Think your policies and procedures are air tight and you will never lose a law suit? 2 out of 3 employees will win if an employment practices law suit goes to trial and 75% of employees get at least some type of compensation after filing suit.
All it takes is an allegation. Contact our office today to find out how to protect your business from Employment Practices Liability claims.