United States laws are currently in place to protect against the unfair treatment of employees and potential employees in the free job market of the US. While these laws can be very useful and beneficial to a more friendly and discrimination-free work environment, there are also cases in which lawsuits have been filed against employers, and expensive and destructive means have been the result. To protect your company against potential lawsuits, employment practices liability insurance can back you up if someone files a claim against you or your business.
What does Employment Practices Liability Insurance Protect Against?
There are three basic areas of coverage under most employment practices liability policies. The most typical areas of employer coverage protect against employee or applicant claims of:
- Sexual harassment
- Wrongful employee termination
Who is the Insurance For?
This insurance is meant for the protection of the employer and their hiring staff. Typically, hiring agencies and staffing organizations are at a higher risk for potential lawsuits, and thus, are usually the ones who purchase the insurance. If a previous employee claims to have been let go unduly, or an applicant believes they were not hired due to discrimination, insurance can protect a company against lawsuits that might otherwise damage their company.
How Can it be Purchased?
Once a company has selected their employment practices liability agent, they should fill out an application form and pay any dues. It is likely that the insurer will want a copy of any employee handbooks or manuals to keep on hand if any claims are filed.