Considering Employment Practices Liability Insurance

The old adage, “You can't please everybody,” is never more applicable than when you own a business and have employees. No matter how fair you are or how safe and supportive a corporate environment you try to cultivate, there will always be employees who do not like your processes, management style, or environment. Some may even accuse you of grievous, illegal violations and take you to court over them. Employment practices liability insurance protects you against various claims that an existing or former employee can bring against you—whether they’re found true or false.
How it Works

When a claim of wrongdoing is levied against you or any of the company’s directors, officers, or other employees, it’s likely you’ll want to defend yourself, your business, your directors or employees against it. Doing so will require that you hire an attorney and go to trial or an arbitrator. This can be extremely expensive and, with the possibility of multiple appeals, could cost more than you can afford even before an assessment of guilt or innocence is ever made. Employment practices liability insurance can help pay for the costs of defending yourself, your company, your directors or employees against the claim.
What’s covered under Employment Practices Liability Insurance?
There are many situations that require defense that can be covered by employment practices liability insurance, including claims of:

• Discrimination
• Sexual harassment
• Wrongful termination
• Civil rights abuses

What is not Covered

Employment practices liability insurance may not cover claims that fall under COBRA, ERISA or the Americans with Disabilities Act when reasonable accommodation must be provided but weren’t. It also may not cover a contractor’s accusation of a breach of contract or employment.

Every business, large or small, that has employees can face claims from past or current workers. Employment practices liability insurance helps make sure that you can defend your company against these claims with minimal expense. When you're ready to look at this important Ohio business insurance coverage, give us a call at 614-221-1500.