Protecting Yourself From Employment Practices Liability

Claims about unfair or discriminatory employment practices have increased in the past decade, leading many businesses to search for a way to limit their liability in this area. Employment practices liability insurance can be an effective tool to help companies accomplish that. 

What Are Wrongful Acts in Employment Practices?

In the U.S., employment practices are governed by the United States Equal Employment Opportunity Commission, which sets the rules for what is and is not allowable when hiring and managing employees. The policies set forth by the EEOC are designed to create fair, equitable and safe workplaces. While most businesses work to comply with EEOC policies, employees who feel they are not treated fairly can, and often do, file claims against them.

How Does Employment Practices Liability Insurance Help?

Employment practices liability policies cover management liability stemming from wrongful employment practices. In most cases, deliberate or intentional acts are excluded from coverage. However, policies do cover many common types of claims made against businesses. These may include:

  • Discrimination (age, race, gender, disability, etc.)
  • Sexual harassment
  • Violations of the Americans with Disabilities Act
  • Wrongful termination
  • Invasion of privacy
  • Wage and hour violations

Companies need to protect their assets from claims made and lawsuits filed against them. Since these claims are becoming increasingly common, it is imperative that the proper insurance is in place to provide protection and limit company liability. For many businesses, that means adding employment practices liability coverage to their existing policies.