Employment Practices Liability Insurance

Employment Practices Liability provides Legal Liability protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. It covers your firm, including its Directors and Officers.

Employment Practices Liability Insurance is needed as soon as you start to hire employees.

Cases against employers are on the rise.

Estimates indicate that three out of five companies will be sued by an employee.

What types of Discrimination charges are most often filed according to Equal Employment Opportunity Commission?

Race 35.6%, Sex 29.7%, Retaliation 34.3%, Age 25.8%, Disability 20.4%, National Origin 11.1% Religion 3.4% and Equal Pay 1.0%

Claims Examples

Sexual Harassment

Jane was hired as a laborer for a road crew and did not show up for work 2 days in a row. She was sent a letter that she was fired and she filed suit alleging that her supervisor made sexual comments and asked if she wanted to have sex. Jane was told that she was acting like a baby and she felt uncomfortable to return to work. This case was settled for $100,000.

Wrongful Termination

Female employee exhibited sudden drop off in work performance. She missed several meetings to address performance and when she did show up she had alcohol on her breath. She complained during the meeting that she faced continuous sexual harassment from a senior manager and her boss suggested that she take another position in the company. She took the new position and failed to show up to work and skipped several meeting with her supervisor. Employee was terminated. Employee filed suit alleging sexual harassment and wrongful termination asking for $1 million dollars in damages. She alleged that a senior manager has been sexually obsessed with her for two years and maintained uncomfortable closeness with her in the workplace and continued to ask her questions about her personal life. The facts revealed that the female employee and senior manager were engaged in a consensual romantic relationship over a two year period. The insurance company determined that an out of court settlement would be safer and more beneficial to the employer. They paid $120,000 in defense costs and settled with the employee for $250,000.