As the name suggests, employment practices liability insurance covers employee claims related to the employment practices of the company that they work for. These claims generally arise when an employee feels that his/her legal rights have been violated by an employer and may include the following:
- wrongful termination
- sexual harassment
- intentional infliction of emotional distress
- breach of employment contract
- wrongful discipline
- failure to hire, employ or promote
Most employment practices policies will cover claims by all full-time employees and some plans may even cover claims by part-time employees, past employees and applicants to the company.
What Isn't Covered by Employment Practices Liability?
This sort of coverage will not generally extend to claims that come under or arise from:
- Fair Labor Standards Acts;
- National Labor Relations Act;
- Worker Adjustment and Retraining Act (WARN);
- plant closures or strikes;
- workforce restructurings;
- Occupational Safety and Health Act (OSHA)
Do I Need Employment Practices Liability Insurance?
Though employment practices liability insurance is not required by law, most employers purchase this sort of coverage due to the ever-rising number of employment-related lawsuits. Employment practices liability insurance may be a reasonable and economical means of protecting yourself as well as your business. Your insurance provider may offer employment practices liability as a stand-alone policy or as an extension you can add to an existing policy.
Should I Contact an Insurance Attorney?
If you have existing employment insurance that you believe covers employment practice claims and your insurance company is unwilling to pay for those claims, an employment attorney with experience in insurance litigation will be able to preserve your rights and help you seek the remedies available to you.