Employment Practices Liability Insurance 101

Will Workers’ Compensation coverage protect your company in the event of a wrongful termination allegation?  NO!  Will your business owner’s insurance cover defense costs if one of your employees is accused of harassing a customer? Most likely, NO.  While some business owner’s policies now provide a sublimit for employment practices liability claims, typically this does not extend to third party liability which is what this claim scenario is talking about.    Does your professional liability insurance policy cover you if someone feels discriminated against in the workplace?  Again, NO!  A separate policy is needed to protect your business against employee related claims that are not related to bodily injury.  Employment practices liability policies can be tailored to fit the needs of your business providing limits you need for expenses and even covering your subcontractors in some cases.  Give our office a call if you would like more information about this type of policy. 

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