The Importance of Employment Practices Liability Coverage

Small business owners face many liability risks just by doing business. General liability coverage is a great first step, but it doesn’t protect against claims filed by employees regarding employment practices.

What Is Covered by Employment Practices Liability Insurance?

Lawsuits filed by employees have been on the rise for the past several years. EPL insurance is essential to protect your business against these unwanted employee claims. Legal fees and settlements can be especially devastating to the small business owner who doesn’t have access to in-house legal counsel. EPLI protects against such things as:

  • Discrimination – If an employee feels they have been discriminated against because of their age, gender, race or ethnicity, they are likely to file a claim.
  • Harassment – Sexual harassment is the most common form, but any employee who is subjected to unwanted advances or unpleasant treatment by a coworker can sue the company.
  • Failure to hire or promote – The Americans with Disabilities Act protects certain groups of disabled Americans from being overlooked for jobs and promotions based solely on their disability. Blindness, deafness and mobility impairments are a few of the conditions that are protected. If someone is denied employment for a covered impairment, they can make a valid case for suing.

Protect your business from unwanted employee claims with EPLI coverage.