The government doesn’t allow you to operate a business with employees without Workers’ Compensation Insurance. You wouldn’t think of driving a company auto without Auto Insurance. Why then, would you neglect the consideration of Employment Practice Liability Insurance to protect you against your own employees?
In today’s litigious society, it is not uncommon to read or hear about the latest lawsuits facing current employers, by their employees. There are fewer lawsuits that hit the employer harder too. With liability claims you often can’t control who comes onto your property and hurts themselves. With employee lawsuits, it’s just personal. There are often reactions like, “But I just had him over for dinner last week!” or “But that was just a joke!” Either way it’s not uncommon to ask, “How could they do this to me?”
With allegations that range from discrimination involving age, sex, and race, along with wrongful termination, and the ever popular sexual harassment, it is no wonder that there is a growing need for Employment Practice Liability (EPL). The policy language available under this type of policy protects companies from such matters, but it is up to the employers to recognize a need. If you are the one responsible for this, it is worth your time to read this: How to Understand the Need for Employment Practice Liability Insurance. This article addresses specific actions that would trigger a claim under your EPL policy.
EPL Coverage won’t protect you from everything. Union related matters, or wage and hour disputes, are currently on the rise but don’t yet have coverage available. But if your company is a “union house” you may still face employee matters that would trigger coverage. You owe it to yourself, and your company, to find out for sure.
An EPL policy can be purchased through a surplus lines insurance broker. Please be aware that such coverage is specifically excluded under any General Liability policy, but perhaps your current broker can place this specialized policy for you. If not, they should be capable of referring you to someone who can. Either way, with society being what it is, this policy is a definite must for all employers who are exposed.