It can happen to ANY business – even yours! Every day, your business, whether big or small, faces the reality of being the target of a lawsuit filed by a past, present or potential employee. You can’t monitor every aspect of an employee’s hire or termination, or every converstion taking place in the office or warehouse. As a result, an off-color joke told in the lunch room; an employee you had to fire; or the potential employee you chose not to hire, are all circumstances that could lead to a potential lawsuit. Even if a claim is frivolous or fraudulent, defending it can be expensive.
Claims for discrimination, wrongful termination and sexual harassment are rarely covered under a General Liability olicy. Typically you purchase General Liability coverage to protect you against slip/falls or a products claim. Most General Liability policies contain specific employment related practices exclusions for claims “arising out of or in the course of employment”.
By purchasing Employment Practices Liability Insurance (EPLI) you have coverage against claims made by past, present and potential employees including claims for discrimination (age, sex, race, etc.), sexual harassment, wrongful termination and a variety of other employment related allegations. Also important is that an EPLI policy will cover legal costs and expenses, whether your business wins or loses the suit.
An EPLI policy can be tailored to meet your business’s needs and should be a part of your Business Insurance Program. Contact our office today for more information.