From the moment that you start the pre-hiring process until the exit interview, you are vulnerable to an employment related 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 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 policies provide 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
Vicarious liability for intentional acts
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 endorsements:
Consultation, HR assistance and other risk management consultative services
Coverage for defense costs outside the policy limits
Third party liability coverage
Wage and hour coverage defense
Volunteer workers can be added as additional insureds
Extended reporting periods
To learn more about employment practices liability coverage and how Biscayne Risk & Insurance Group can help protect your business, contact us today at (561) 571-1001.