Your employees are one of your most valuable assets. We know that you may trust your employees, but mistakes can happen. You may say ‘it won’t happen to me’, but employment practices liability (EPLI) claims are on the rise. As long as people strive to make money, lawsuits against employers will happen.
Coverage that may be cited in an Employment Practices policy include:
- Wrongful Termination
- Sexual Harassment
- Invasion of Privacy
- …and More
There are multiple reasons why an employee may bring suit against their employer, but we would like to point out a few coverage components to look for.
FLSA (Fair Labor Standards Act) – Directly related to Wage and Hour coverage, this component of Employment Practices policies protect you from lawsuits that allege overtime pay not being made.
EEOC (Equal Employment Opportunity Commission) – This component protects you if after an employee files a discrimination suit, the EEOC also files suit for violations of federal civil rights laws. In one example, a company incurred over $700,000 in defense costs. If you have EEOC coverage on your policy, you won’t have to incur that loss.
Third Party Coverage – This component protects you from wrongful acts committed against customers, clients, vendors and supplies. For example, a consulting firm may have multiple interactions with the public. If your employee happens to harass a customer, the customer could sue your company. Third party coverage protects your company against this.
Duty to Defend – Obligation of an insurer to assume control of the claim defense process, including selecting counsel & paying legal bills. Click HERE to learn more about Employment Practices Liability.