Employment practices liability coverage is a form of insurance that covers wrongful acts of the employer arising from the employment process. The most frequent types of claims alleged under such policies include: wrongful termination, discrimination, retaliation, and sexual harassment. Federal and state legislation was previously enacted to protect the rights of employees. Unfortunately, the misuse of these laws has resulted in a greater frequency and higher severity of employment-related lawsuits, consequentially furthering the need to insure against this type of litigation.
An employer can never be too careful in managing, promoting, disciplining, and terminating employees. Yet, no matter what precautions are taken, there is always a possibility that an employee will sue your organization alleging some misconduct. Employment practices liability insurance will help to protect your organization in situations of this nature.
The coverage is written on a claims-made basis and is typically addressed within a directors’ and officers’ liability insurance program; however, stand alone coverage is also available to suit the particulars of your organization.
