How Does Employment Practices Liability Work?

Running a business isn’t easy, and there are a lot of things that can go the wrong way without much effort. The first place where things can accidentally take a wrong turn is in human resources and hiring employees. When someone in your company says or does something that is or can be interpreted to be negative, you can find yourself in the midst of a lawsuit. This is where employment practices liability comes in.

Necessary Protection

With the right insurance coverage, you can get protection—including defense costs and settlement rewards—if an employee of yours is drawn into a lawsuit for things such as sexual harassment or discrimination. When you do not have this kind of protection in place, you could end up covering everything from lawyer to settlement on your own. The HR department is the first area where your company is vulnerable; you don’t want to leave that exposed.

Claims Examples

There are many different ways that employment practices liability can play out, including disability discrimination, race discrimination, gender discrimination, sexual harassment, wrongful termination, and more. Claims can involve employees currently working for the company, previous employees, applicants, and even customers. Even if “nothing” happened, if your company is drawn into a lawsuit and found not at fault, you still have to cover the costs of representation and a trial, if necessary. Make sure you have the right coverage for employment practices today.