Employment Liability Insurance


Coverage
insights

Employment Practices Liability Insurance

From the moment that you start the pre-hiring process until the exit interview, you are vulnerable for a lawsuit. As a result, your business should take a hard look at whether it can afford to defend itself against alleged wrongful employment practices accusations. If not, there is an insurance solution called Employment Practices Liability that protects against wrongful termination, discrimination (age, sex, race, disability, etc.) or sexual harassment suits from your current, prospective or former employees. This coverage applies to directors, officers and employees, and can sometimes extend to third party liabilities.

Why Choose Employment Practices Liability Insurance?

According to researchers, three out of five employers will be sued by a prospective, current or former employee while they are in business. While many suits are groundless, defending against them is costly and time-consuming.
Employment Practices Liability Insurance provides protection from the following wrongful employment practices, insluding:

  • Harassment
  • Discrimination
  • Actual or alleged wrongful dismissal, discharge or termination
  • Employment-related misrepresentation
  • Employment-related libel, slander, humiliation, defamation or invasion of privacy
  • Wrongful failure to employ or promote
  • Wrongful deprivation of a career opportunity, wrongful demotion or negligent evaluation
  • Wrongful discipline
  • Vicarious liability for intentional acts
  • Punitive damages
  • Coercion or humiliation in relation to race, marital status, gender, age, physical and/or mental impairments, pregnancy, sexual orientation and any other protected class established by federal, state and local statutes
  • Many policies offer the following inslusions and add-ons:

  • Consultation, HR assistance and other risk management consultative services.
  • Coverage for defense costs outside the policy limits (for qualifying risks).
  • Third party liability coverage (for qualifying risks).

Provided by The Capacity Group of Companies

This Coverage Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2007-2010 Zywave, ins. All rights reserved.


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OVERVIEW


  • Volunteer workers can be covered
  • This policy is a claims made policy; Extended reporting periods may be added.
The Importance of Third-Party EPLI

Many employers do not realize—until it is too late—that they have a gap in their insurance coverage that leaves them vulnerable to discrimination and harassment lawsuits from customers, clients, vendors and suppliers. Standard EPLI policies only provide coverage for lawsuits brought about by employees or prospective employees, and most commercial general liability (CGL) policies specifically exclude coverage for harassment and discrimination. That’s where third-party EPLI comes in.

Attention Transportation professionals:
Having a customer sue you for sexual harassment or discrimination can be devastating to your business, and to your reputation. Find out how our 3rd Party Employment practices liability coverage can help protect you!

Third-party EPLI fills this gap between EPLI and CGL, and offers protection against allegations of wrongful acts made by customers, clients, vendors and suppliers.

To learn more about Employment Practices Liability coverage and how The Capacity Group of Companies can help protect your business, contact us today at 201-661-2458.