Statistics suggest that three out of five companies will be sued by an employee or former employee — or even someone who interviewed but never became an employee — at some time. That would suggest that anyone who has a business should consider that it is not out of the question that they could be a target.
Employment practices liability is a newcomer to the insurance coverage world. It provides the employer, directors, officers, and business protection against claims which are made by employees, potential employees, or former employees.
Such claims include wrongful termination, sexual harassment, invasion of privacy, breach of contract, emotional distress, false imprisonment, and wage and hour law violations. It also covers discrimination, whether racial, sex, age, disability, or any other unlawful discrimination, and other employment-related accusations or law suits.
It might be something you or your managers or supervisors are accused of doing or saying, or it may be over an off-color joke someone told in the break room. Or it might be something that a disgruntled employee has exaggerated. Any
As a business owner, you will want to have employment practices liability coverage before you hire your first employee.
All companies are vulnerable, whether small or huge, and even a groundless suit can cause major damage in financial resources, and time if the company is not covered.
If you plan to have have one single employee or 5,000, you will want to look into employment practices liability insurance. Be sure to talk to your licensed insurance professional about what levels of EPL you should have.