Category Archives: employment practices liability

Employment Practices Liability Insurance

Understand the Importance of Employment Practices Liability Insurance

As a business owner, many of your decisions affect your employees. Sometimes these decisions are upsetting, and workers will alleviate their frustrations by filing a claim against your business. This is why it is important for you to have employment practices liability insurance.

What Does an Insurance Policy Cover?

Liability insurance is designed to protect businesses against several types of claims, including:

  • Discrimination
  • Wrongful termination or discipline
  • Sexual or religious harassment
  • Wages and hours claims
  • Breach of contract
  • Emotional distress.

Insurance policies are used to protect director and officers, management personnel, and clients who are subject to the workplace environment. Coverage can also be extended to non-employees who are affected by workplace actions.

How Does a Business Receive Coverage?

Employment practices liability insurance is written on a claims-made basis, and you must report claims by a certain date if you expect to receive coverage. Any events that led to the claim must have also occurred on or after a specific date. There are services available to businesses that allow them to report earlier claims, but you will need to contact your insurance agency to see if these options are available to you. If a lawsuit is brought against your business, employment practices liability insurance can cover any defense or settlement costs that arise. Do not let your business remain vulnerable. Contact an insurance agency and secure protection.


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The Right Coverage Can Help a Business Deal with Discrimination Suits

Discrimination suits can spell ruination for even the most successful business. That’s why all workplaces must take care to choose appropriate employment practices insurance coverage. Without a sound policy in place, claims can quickly contribute to a company’s demise. This is especially true in today’s working environment, where an aggressive approach is common when dealing with discrimination allegations.


Managing Risks in the Workplace Can Prevent Claims From Occurring


While dealing with claims once they’ve occurred is a key feature of reliable employment practices insurance coverage, risk management can also be highly beneficial. Risk management procedures can reduce the amount and severity of claims taking place within a workplace. This can greatly diminish the expenditure necessary for a company when dealing with lawsuits and the like.


Comprehensive Policies Are Essential to Mitigating Claims


When it comes to employment practices insurance coverage, the right policy will offer a comprehensive approach to dealing with discriminations claims. Such policies must include coverage for an array of circumstances relating to claims, including:


  • Defense Costs
  • Incurred Damages
  • Cost of Investigation
  • Associated Legal Fees


Protect Your Business From Costly Legal Proceedings


Because companies may face a myriad of challenges within the workplace, the right policy must offer coverage in variety of circumstances. Through a combination of managing risk and dealing with ongoing claims, you can rest assured that your business can deftly handle lawsuits stemming from discrimination allegations.

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How to Avoid Lawsuits from Employees and Applicants

employment practices liability

employment practices liability

Being a manager, supervisor, or owner of a business can come with a lot of obligation and difficult decisions to make. From hiring and firing employees, to assessing employee situations that arise, you are often called upon to determine the best remedial action or final call. This pressure can sometimes make you feel like you are walking on a tightrope to avoid further negative outcomes. Making the correct judgment calls comes down to weighing all aspects of the situation heavily, and doing your best to avoid snap judgments based on race, gender, sexual orientation, and other discriminatory biases.

By treating all job applicants and employees equally and not taking determinate action based on prejudice assumptions, you can avoid many terrible legal situations. Employment practices liabilityclaims have been created to deal with situations that fall under this category. This type of coverage protects hiring and staffing industries who deal with:

  • Interviewing of potential employees
  • Employee hiring
  • Temporary employment or “temp” workers
  • Firing

Lawsuits are becoming more common, and you never know when an applicant or employee will claim that they were discriminated against in the workplace. Employment practices liability gives you an added level of reassurance and protection against these commonly sought-after lawsuits. Protect your business and your staff by taking the initiative to look into employment practices liability claims and how to get coverage.

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