Employment Practices Liability Insurance

From the moment you start the pre-hiring process until the exit interview, you are vulnerable to an employment-related lawsuit. Even if they are not warranted, claims for wrongful employment practices can disrupt operations, damage your business’s reputation, hurt employee morale and negatively impact your bottom line.

Thankfully, Employment practices liability can protect directors, officers and employees against a wide range of employment practices claims, including wrongful termination, discrimination, sexual harassment and retaliation.

Why Purchase 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:

  • Wrongful termination or discrimination
  • Sexual harassment 
  • 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 add-ons:

  • Consultation, HR assistance and other risk management services.
  • Coverage for defense costs outside the policy limits 
  • Third-party liability coverage
  • Wage and hour coverage for claims alleging wage and hour violations
  • Volunteer workers can be added as additional insureds

To learn more about employment practices liability coverage and how First Insurance Group can help protect your business, contact us today.

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