Whether the staff size is 5 or 500, in today's environment every business is at risk. Employment Practices Liability Insurance concerns touch virtually every single business in the U.S. The increase in employment-related lawsuits appearing in the media is just the tip of the iceberg, there are thousands more never heard about. For every suit filed in court, there are many others settled out of court for undisclosed amounts of money.
What can EPLI cover?
- Failure to promote
- Wrongful termination
- Employment-related misrepresentation
- Sexual harassment
- Negligent evaluation
- Wrongful discipline
- Defamation
- Discrimination
- Invasion of privacy
- Emotional distress
Coverage Scenarios:
Sexual Harassment
A food service employee complains to management that co-workers are making sexually suggestive statements to her. She is terminated because the company feels she is not qualified for the job. The employee sues the company and the officer who requested her dismissal, alleging sexual harassment, discrimination, and retaliation.
Employee Misrepresentation
A company president promises an employee promotion to vice president. The employee is encouraged to prepare for expansion and turns down an opportunity to work elsewhere, based on the president's promises. The employee is later terminated in a company restructuring. The employee sues the company and its president for fraud and misrepresentation.
Discrimination
A wheelchair-bound employee of a supermarket is dismissed in a reduction in force. She sues her employer, alleging that the supermarket discriminated against her on the basis of her disability in violation of the Americans with Disabilities Act.
*To protect your agency against lawsuits resulting from employment practices and discrimination, you can add Employment Practices and Discrimination Liability coverage to your Westport/Swiss Re E&O policy.