What you need to know about employment practices liability insurance

Employment practices concerns make headlines daily. They are the focus of popular novels and movies, and they are among the most popular topics discussed around the offi ce coffee pot. Liability your business faces could result from wrongful termination; discrimination in hiring practices, including age, sex and race; sexual harassment; and not following the requirements set forth in the Family and Medical Leave Act and the Americans with Disabilities Act.

Employment practices liability has become such an issue largely because th e first major piece of federal legislation prohibiting employment discriminationwas expanded in 1991 to grant employeesthe right to a jury trial and permit therecovery of compensatory and punitivedamages. In 2010, nearly 100,000individuals fi led charges with the EqualEmployment Opportunities Commissionagainst employers. Th ese charges resultedin 250 suits being fi led by the EEOC wheremonetary damages (not including defensecosts) were awarded in the amount of$85.1 million. Employees are being awardedpayments for back wages, compensatory damages and medical expenses. Standard business policies and commercial general liability coverage provide little or no protection against employment practices claims. And, coverage for such claims has been omitted from the employers section of workers’ compensation forms. However, there is help available—employment practices liability insurance.

For any questions concerning EPLI or being sued by an employee, please contact us. We want you protected!

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