What is Employee Practices Liability Insurance?

As a business owner, you know that workplace discrimination is against the law and you actively do your best to eliminate these incidents and other employment-related accusations within your business. But even with the best intentions, you can’t be everywhere at all times. 

Across the United States, approximately three out of five businesses have been sued by an employee, potential employee or formal employee based on claims of the following: 

• Discrimination (based on race, sex, age, disability, sexual orientation, marital status etc.)
• Sexual harassment
• Wrongful termination
• Breach of contract
• Retaliation
• Failure to employ or promote
• Deprivation of career opportunity 

Given the statistics, it’s easy to see why every business owner should take employment practices liability risks seriously—even if it sounds like the stuff you only see on the news. After all, you are responsible for the fair treatment of your staff and perspective employees. 

Employment practices liability insurance protects the business—including directors and officers—against the financial burden of such claims. Whether claims are legitimate or not, there are still legal expenses—not to mention, your time—involved. 

All businesses with employees (even with a small staff) should consider this coverage to protect against vulnerabilities. You may think your employees would never make claims like that against you, but when it comes right down to it, they have their own best interests in mind. Protect yours with employee practices liability insurance.