Employment Practice Insurance
What is Employment Practices Insurance?
Employment practice insurance provides coverage to employers against employee claims arising from allegations of wrongful employment practices.
Small or new businesses are particularly vulnerable to employment claims due to a lack of strong legal support and employee handbooks outlining policies on hiring, discipline, and termination.
Employment practices insurance does not replace strong employment practices. Most insurers will only cover businesses with basic positive practices in place.
What Does Employment Practices Insurance Cover?
Employment practices insurance provides protection against a range of employee lawsuits, including claims of:
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Sexual harassment
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Discrimination
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Wrongful termination
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Breach of employment contract
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Failure to employ or promote
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Wrongful discipline
Employment Practices Insurance Tips
Employment practices insurance protects against lawsuits that are not covered by general business liability insurance. EPLI also includes protection for the full company, whereas directors’ and officers’ liability insurance only protects the managment individual.