Why Employment Practices Liability Insurance is Necessary

Have you ever been at one of your clients and heard a seemingly innocent joke and thought to yourself, “Whoa, that was wildly inappropriate”?

Chances are your clients are tremendously exposed to employee claims of harassment, not to mention – discrimination, wrongful termination, or breach of contract. In fact, if your clients are small or new corporations, without established policies and procedures, they are especially at risk.

3-out-of-5 Businesses
Will Be Sued By An Employee

Even if a job candidate doesn’t make it past the interview process, they can still sue the company. Employee litigation is extremely expensive, and a drag on resources.

Employment Practices Liability Insurance provides protection to your clients against claims made by employees, former employees, potential employees, and third parties. It covers wrongful termination of employment, sexual harassment, discrimination and other employment-related allegations.

Real Life Examples

An executive revealed he was gay just before being passed over for a promotion. He sued for sexual discrimination.
A salesperson pursued a client’s receptionist to go out on a date. She sued the salesperson’s company for sexual harassment.
An HVAC repairman made a racially charged comment to an employee during a repair visit . They employee sued for harassment.

How Can You Help Your Clients?

Make sure your clients have the following: Employee handbook, job descriptions, periodic performance reviews, pre-hire screening program, candidate background checks, record-keeping system, and Employment Practices Liability Insurance.

DOWNLOAD: EPL Application