Employment practices liability insurance is a type of coverage that covers certain employment-related claims that can be filed by one of your employees. For example, if one of your employees claims that a manager discriminated against him or her in the workplace, your employment practices liability insurance would kick in and pay for the expenses associated with legally defending your company and also take care of making payment on behalf of your business if a settlement is reached.

Why Does Your Business Need This Insurance?

If your business does not already have this form of insurance, you should speak with your professional liability risk advisors right away about acquiring a policy. Even if your business makes treating all of its employees with respect and fairness a priority, an employee may become disgruntled after a mistake is made and bring up a lawsuit against your business that threatens its financial stability and reputation.

What Does This Insurance Cover?

When you speak with your professional liability risk advisors about employment practices liability insurance, they will inform you that this type of insurance is less standard and more individualized than other types of policies. These policies generally cover wrongful discharge, workplace harassment, emotional distress, workplace discrimination claims, privacy-based claims, and more. However, what your policy covers will likely depend on the specific needs of your company and its prior employment claims history.