Employer Practices Liability
Sidney Sacks Agency Inc. Protects Your Business
Employment practices is becoming an increasing area of concern for employers. It involves issues with hiring, discrimination, benefits, harassment, wrongful termination and other employment related concerns.
These types of claims are generall not covered, or are given as only token coverage on business owners policies. Your business also needs protection for Third-Party Employment Practices Liability Insurance.
Unfortunately, in our society, every business transaciton, large or small, comes with the threat of a lawsuit. Even employers who are adherent to the law risk being sued by an aggrieved employee or customer at some point. Defending against lawsuits, even if they are groundless, is costly and time consuming.
Carrying employment practices liability insurance (EPLI), lends your business a measure of protection against lawsuits from current, prospective, or former employees who allege “wrongful acts” such as discrimination (age, sex, race, disability, etc.), sexual harassment, or wrongful termination.
The Importance of Third-Party EPLI
Many employers realize too late that they have a gap in their insurance coverage that leaves them vulnerable to discrimination and harassment lawsuits from customers, clients, vendors, and suppliers. Standard EPLI policies only provide coverage for lawsuits brought about by employees or prospective employees. Additionally, coverage for harassment and discrimination is excluded from most commercial general liability (CGL) policies. That’s where third-party EPLI comes into play.
Third-party EPLI fills the gap between EPLI and CGL, offering protection against allegations of wrongful acts made by customers, clients, vendors and suppliers. In general, covered claims include the following:
Discrimination, based on:
- National origin
- Sexual orientation
- Unwanted sexual advances
- Unwanted requests for sexual favors
- Other verbal or physical actions that create a hostile or offensive work environment
Third-party EPLI is vital for businesses that center around daily customer interaction, but even if your organization doesn’t have regular exchanges with the general public, you may still benefit from third-party EPLI coverage. If your operations involve clients, suppliers or vendors, this coverage is worth considering. To learn more about third-party EPLI coverage, request a free quote.