Employment Practices Liability Insurance
From the moment that you start the pre-hiring process until the exit
interview, you are vulnerable to an employment-related lawsuit. As a
result, your business should take a hard look at whether it can afford to
defend itself against alleged wrongful employment practices accusations. If
not, there is an insurance solution called employment practices liability
that protects against wrongful termination, discrimination or sexual
harassment suits from your current, prospective or former employees. This
coverage applies to directors, officers and employees, and can sometimes
extend to third party liabilities.
Why Choose Employment Practices Liability Insurance?
According to researchers, three out of five employers will be sued by a
prospective, current or former employee while they are in business. While
many suits are groundless, defending against them is costly and
Employment practices liability policies provide protection from the
following wrongful employment practices:
Actual or alleged wrongful dismissal, discharge or terminationEmployment-related misrepresentation
Employment-related libel, slander, humiliation, defamation or invasion of
- Wrongful failure to employ or promote
- Wrongful deprivation of a career opportunity, wrongful demotion or
- Wrongful discipline
- Vicarious liability for intentional act
- Punitive damages
- Coercion or humiliation in relation to race, marital status, gender, age,
physical and/or mental impairments, pregnancy, sexual orientation, and any
other protected class established by federal, state and local statutes
Many policies offer the following inclusions and add-ons:
- Consultation, HR assistance and other risk management consultative
- Coverage for defense costs outside the policy limits
- Third-party liability coverage
- Wage and hour coverage for claims alleging wage and hour violations
- Volunteer workers can be added as additional insureds
- Extended reporting periods may be added.
To learn more about employment practices liability coverage and how
Pasadena Insurance Agency, Inc. can help protect your business, contact us
today at (713) 869-6991.
The Importance of Third-party EPLI
Many employers do not realize 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, and most commercial general liability (CGL) policies
specifically exclude coverage for harassment and discrimination. That’s
where third-party EPLI comes in.
Third-party EPLI fills this gap between EPLI and CGL, and offers protection
against allegations of wrongful acts made by customers, clients, vendors
Third-party EPLI is vital for businesses that deal with customers on a
daily basis. However, even if your firm doesn’t have a lot of interaction
with the general public, you may still benefit from third-party EPLI
coverage if your operations involve clients, suppliers or vendors. To learn
more about third-party EPLI coverage and how Pasadena Insurance Agency,
Inc. can help protect your business, contact us today at (713) 869-6991.
Do I Really Need Employee Practices Liability Insurance?
Charges against employers for discrimination, harassment, wrongful
termination, retaliation, and wage-and-hour violations are at all-time
Latest statistics show the US Equal Employment Opportunity Commission
(EEOC) received over 91,000 charges in 2016 -- and more than 10% of those
were in Texas.
In the past, big firms were the main target of EPLI actions but that's no
longer the case. All sizes of companies, non-profits and other
organizations can find themselves on the receiving end of a lawsuit.
Pasadena Insurance Agency will review your existing coverage or provide a
fast quote for a new policy, without charge and without commitment on your
Simply call us at
or use this website -- and we'll get to work for you. Please
don’t wait till it's too late! That could put the survival of your business
Provided by Pasadena Insurance Agency, Inc.
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