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Employment Practices Liability Insurance – A Necessity for Today’s Businesses

iStock_000006239459XSmallIn recent years, the number of employment practices lawsuits filed with the Equal Employment Opportunity Commission has reached an all-time high. Businesses face a higher degree of litigation than ever, resulting in frequent losses due to settlements, defense, and court costs. Whether you own a large, international company, or a small, local business, odds are fairly high that you will endure this type of lawsuit at some point in the future.

Many business owners feel confident that their hiring and money.

Defense costs average between $80,000 to $120,000, anding.

Employment Practices Liability insurance offers coverage in the event of such litigation, including but not limited to:

  • discrimination based upon race, color, religion, creed, sexual orientations, pregnancy, military status, age, disability, or sexual preference
  • harassment, such as sexual harassment or bullying
  • wrongful termination
  • retaliation
  • failure to employ or promote
  • wrongful demotion
  • negligent evaluation

If your company is ever sued for an employment practices violation, putting together an aggressive defense is usually your best shot at getting the suit quickly dismissed. Most employment practices liability insurance policies contain the “duty to defend” clause, meaning the insurer is responsible for assigning a defense firm for you. Often the counsel has already negotiated a rate with the insurer, and the chosen attorneys specialize in this area of the law.

For more information on employment practices liability insurance, call our office to schedule a consultation. We can discuss your business needs, and help you select a level of coverage that best protects your livelihood.