Employment Practices Liability
What is Employment Practices Liability insurance?
Employment practices liability insurance is the type of insurance you get to cover claims about your so-labeled wrongful employment practices. A disgruntled employee who has been asked to leave on grounds of misconduct may cause you a lot of discomfort and frustration by suing your business for wrongful termination.

You might think this could be a problem big corporations have to frequently deal with, but small businesses are affected by this problem just as much. Statistics show that businesses with a number of employees between 10 and 20 are very likely to face employment practices lawsuits no matter how cordial relationships in the organization are.
Who needs an Employment Practices Liability insurance policy?
In simple terms, every business with one or more employees needs a decent employment practices liability insurance policy. Regardless of the size of your business, you should get thorough wrongful acts liability coverage. You should also not avoid getting insurance for your employment practices just because you know you are a fair and good employer. Angry employees under various pressures could try to manipulate the situation and get some money out of the situation regardless.

Even if you are very confidence of your employment practices and believe any claims in this area will be dismissed by the court eventually, you need to understand you will still have to go through the trouble of investing time and money on defending your business until the case is concluded.

Therefore, as a business owner who employs workers, you should make sure your business has ample premium in its employment practices liability insurance.
Employment Practices Liability insurance coverage
Angry employees can sue you for just about anything, and there is a long list of reasons that have been used in employment practices lawsuits before. With proper employment practices liability insurance coverage, you can delegate the liability to your insurance provider who will then pay for the damages proven during the course of the lawsuit or the settlement amount you agree to pay to avoid a trial altogether. Your carrier will also pay the legal fees involved in defending the lawsuit along with other court related expenses.
What does Employment Practices Liability insurance cover?
Employment practices liability insurance coverage is meant to help your business survive frivolous as well as genuine lawsuits against your employment practices. In a time when anybody can take anybody to court with ease, every business organization with a proactive approach to defending itself against damages claims gets proper cover from employment practices liability exposure.

However, organizations within the same industry may have their specific risks in every aspect of business. As a responsible business owner, you would be remiss not to make sure you were working with the right insurance carrier and agency to get the most out of your insurance policies.

At Ficke Insurance, we have over 35 years of experience in helping small and growing businesses get comprehensive employment practices liability insurance coverage. Working with us, you will get a tailored insurance policy that gives you cover for your business-specific employment practices risks.
Typical areas of Employment Practices Liability insurance coverage
Typically, an employment practices liability insurance policy covers a wide range of claims. To give your business comprehensive employment practices liability cover, you will need to make sure your policy includes the following covers:
  • Sexual harassment liability coverage for all kinds of claims related to inappropriate sexual behavior of your executives with employees
  • Discrimination liability coverage to ensure your business can combat against all lawsuits that label your practices discriminatory on the basis of age, race, gender, disability, or some other factor
  • Wrongful termination liability coverage for claims about wrongful firings or demotions you have to face
  • Coverage for situations where an employee decides to sue you for not promoting them when they believe they deserved it
  • Invasion of privacy liability coverage for claims where you are accused of misusing personal information of an employee
  • Negligent compensation liability coverage for claims about inadequate remuneration
  • Defamation liability coverage for claims where you are accused of maligning an employee's reputation
  • Breach of contract liability coverage for claims related to accusations about your neglecting a clause of the employment agreement
Apart from these covers, you need appropriate coverage for wage related claims, benefits mismanagement claims, and more, depending on your business-specific risks.

To get more information about what your insurance policies should look like, contact one of our agents right now.