Employment practices liability insurance policy covers an insured entity and its employees from liability that comes from their employment practices. The most common claims come from wrongful termination, some type of discrimination, and sexual harassment. These employment practices may be true or just alleged acts. All claims must be investigated as this is becoming a big issue in the workplace.
Most employment practices liability polices do not cover directors and officers. There can be an endorsement added to the policy to provide this coverage, or there can be a separate policy written to provide coverage.
There are many things that can be excluded from coverage on an employment practices liability policy. A typical exclusion is if there is any violation of workers compensation laws. Most exclusions are for federal laws that have been violated. This insurance coverage is not intended for companies that are blatantly breaking the law.
Other things that will not be covered are wrongful acts by directors or officers, fiduciary liability actions, or any type of internet liability. These would all be covered by different policies.
Insurance coverage for businesses can be very complicated. It is important to have an insurance agent that not only writes commercial coverages, but is familiar with your industry. It is important to make sure that your business is adequately covered against all of the potential liability claims that can arise. Visit our website to learn more.