Do You Need Employment Practices Liability Insurance?
It is an unfortunate truth that we live in a very litigious society, with people flocking to court houses to sue over slights real and imagined or attempting to obtain compensation for alleged violations of their rights. While there are many different types of insurance that a business may need, there is one in particular that you should definitely have if you have a workforce of any size. Employment practices liability insurance can protect your company against lawsuits or claims from your employees regarding violations of their rights as employees of your business.
Large corporations may have in-house legal teams and hefty budgets with which they can fend off a barrage of lawsuits, but smaller businesses could find themselves in an extremely costly battle in court if they don’t have the right insurance coverage to protect them against possible claims of rights violations by their employees. Some of the more frequently seen lawsuits for which employment practices liability insurance can offer coverage include sexual harassment, breach of employment contract, failure to promote, wrongful termination, mismanagement of company policies or benefit plans, and infliction of mental or emotional distress (sometimes known as a hostile work environment).
You may not think you need this type of insurance for your business, but the truth is that if you have employees working for you, having the insurance before you need it is infinitely better than needing it and not having it. While issues may be few and far between, they can still arise and cost your business in more ways than one.