We live in a world of lawsuits these days, andings can occur. It can be scary to realize that a single lawsuit could potentially ruin your business. But that’s exactly what could happen if you fail to protect yourself adequately.
Luckily, Employment Practices Liability Insurance is widely available today, with premiums becoming affordable for practically every business. The protection of Employment Practices Liability Insurance covers you against claims of:
- sexual harassment
- wrongful termination
- violations of the Americans with Disabilities Act (ADA)
- discrimination due to gender, age, race, or religion -such as failure to hire or promote based on these factors
It’s important to remember that you can’t make everyone happy all of the time, and unhappy workers sometimes file claims of discrimination even if they are baseless. Even if the case is eventually discharged from court, or if you win the lawsuit, you will probably incur excessive attorney’s fees. And if the disgruntled worker wins the case, you could be looking at a settlement in the six- or even seven-figure range.
When you’re shopping for Employment Practices Liability Insurance, remember to look for the following clauses in a policy:
- the policy covers intentional acts of discrimination
- the policy covers prior acts of discrimination
- the insurance covers your business as well as managers and employees
- the policy offers loss control services to prevent small claims from becoming big ones
- Is there a copay for damages which exceed your deductible?
The above are only some of the important questions you should ask about your Employment Practices Liability Insurance. You may also find it helpful to consult with a business attorney, who can advise you on the current state of the court system with regard to discrimination lawsuits.