Why Consider Employment Practices Liability Insurance?

Businesses can use anywhere from a few to many employees. Those with employees must strive to treat workers fairly and must abide by labor laws. Sometimes though, even the most conscientious businesses and employers find themselves embroiled in labor disputes. Employment Practices Liability Insurance can protect these businesses from costly claims.

Employment Practices Liability Insurance is designed to provide coverage to businesses that face claims made by disgruntled employees. These matters can run the gamut from allegations of sexual harassment to defamation claims just to name a few. In addition to providing coverage to pay for damages that may be awarded to the claimant, Employment Practices Liability Insurance can also assist in covering legal costs and fees incurred in the defense of a claim.

The importance of Employment Practices Liability Insurance cannot be underestimated. Claims can arise all the way from the hiring process to the termination of any employee. During hiring, asking the wrong questions or an applicant’s perception of discrimination, whether it actually occurs or not, can result in an employment practices liability claim. During the time an employee works for a business, claims can arise from allegations of a hostile work environment. If an employee is seeking a promotion and believes they were passed over in favor of a less qualified employee, an employer may find that they are the defendant in an employment claim. Even when an employee is rightfully terminated, it is not uncommon for their former employer to receive a wrongful termination claim.

Ideally, businesses run smoothly and everyone is happy. Unfortunately, the world is a litigious one and businesses are not exempt from the possibility of employment-related suits. Protecting businesses from the potential financial ruin occurring from such employment matters is paramount. Employment Liability Practices Insurance can assist in making financial security possible.

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