Employment Practices Liability
Claims against businesses by employees for harassment, wrongful termination and other employment related practices have skyrocketed in recent years. Even if you did nothing wrong, the cost of defense alone could do serious damage to your business. Employment Practices Liability covers both the claim and the cost of defense. Call us today for a quote on this extremely important coverage!
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What is Employment Practices Liability Insurance?
Your business is subject to financial loss from employer/employee claims. This includes sexual harassment, discrimination, wrongful termination and retaliation. Claims for failure to hire, wrongful discipline and deprivation of career opportunity are also covered.
Employment Practices Liability Insurance can provide coverage for these claims and for the cost to defend against such claims, which can be substantial. A simple complaint by a former employee with the Equal Employment Opportunity Commission (EEOC) is the beginning of Employment Practices Liability claim.
Examples of Employment Practices Liability Claims
Racial Harassment ($1,650,000)
- A general contractor will pay $1.65 million to settle a racial harassment lawsuit brought by the EEOC on behalf of African-American employees who claimed they were subject to a racially hostile work environment. The lawsuit alleged that racial slurs were used in everyday conversation, a life-sized hanging noose was displayed in a work area, and racial epithets were scrawled in portable toilets at a construction site.
Age Discrimination ($773,000)
- An employer will pay $773,000 to settle an age discrimination case brought by the EEOC on behalf of several employees who were 47 to 65 years old when they were terminated in a reduction in force.
Disability Discrimination ($1,700,000)
- A jury awarded $1.7 million to an employee with a disability who was not reinstated to her former position upon her return from medical leave even though she was still able to perform the essential functions of her job. Instead, the employer offered her a different position at half her salary.
Retaliation and Sexual Harassment ($420,000)
- The executive assistant to the Chief Financial Officer was terminated for divulging confidential information to staff regarding impending company layoffs. A suit was brought by the assistant for retaliation and sexual harassment as she claimed the CFO always made suggestive comments and improperly touched her.
Age Discrimination ($1,000,000)
- $1,000,000 was awarded to a 49-year old former sales manager in an age discrimination case. The individual was terminated after 17 years with the company. Officials told him that “he looked his age” and that he did not fit into the young, aggressive image the firm was trying to achieve
The above summary is not a policy and is only intended as a brief presentation of available coverages. The actual insurance policy will provided full details of all benefits, conditions and exclusions.