Employment Practice Liability Insurance

Written by dagny on . Posted in Insurance

If you have employees then there is a chance that at some point you will be sued by one of them. Employees suing employers are fairly common occurrences. Reasons for the lawsuit may range from real or alleged forms of any of the following: sexual harassment, discrimination (based on age, race, sex or disability), breach of contract, emotional distress, violation of fair payment acts or violation of paying overtime or honoring government mandated work breaks. Employees who have been wrongly terminated, or believe they have been may also sue. Women who leave to have a baby are required by law to be given the same position at the same pay as when they left. Employers who offer a lesser job or don’t give them paid time off can be sued. Other factors that may result in lawsuits are treatment over religious beliefs, defamation of character, invasion of privacy and more.

Unfortunately there doesn’t have to be any burden of proof on the claimant to file a lawsuit. Some people file suits to see if they can get a payout, hoping to not ever have to appear in court. The biggest problem with lawsuits for employers is that whether they are based on fact or based on belief or feeling, they will still cost a company time and money. Legal expenses can shut a business down.

Employment Practice Liability Insurance covers businesses in the case of a lawsuit brought about by an employee. Those who should carry EPLI include high-ranking members of the company such as managers, executive directors, CEOs, COOS, human resource personnel and more. Many smaller companies face lawsuits because they have no procedures in place for hiring, discipline or termination of employees. In these cases, the employee terminated or disciplined or not hired could bring a suit about because there are no set standards to show why or how these procedures should happen.

EPLI coverage extends to suits from prospective employees, current employees, independent contractors, leased employees, volunteers and terminated employees. Sometimes Employment Practice Liability Insurance is rolled into a management liability policy, officer’s liability insurance or director’s liability insurance.

Whether you have a small business or a larger corporation, be sure to protect yourself against potential lawsuits from employees by signing up for Employment Practice Liability Insurance before you launch your business. Be covered to keep your business running efficiently and effectively.

If you have questions or concerns about your current policy or if you want to sign up for an EPLI insurance policy, call Richard Turner San Diego Insurance Agency today.

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