Who Needs Employment Practices Liability Coverage?

All businesses, regardless of their size, are susceptible to allegations from employees. Even the most successful companies that are very careful around their employees could find themselves facing a lawsuit at any time due to employee claims against them. In order to financially protect themselves from unexpected allegations, it is important for businesses to always have employment practices liability coverage in place.

What Industries Need Coverage?

Employment practices liability coverage is designed to protect businesses against some of the most common types of employee allegations, including:

  • Sexual harassment
  • Discrimination
  • Breach of contract
  • Wrongful termination

Since every industry is susceptible to these types of claims, it is important for every industry to have adequate employment practices insurance coverage if they hire employees to work for them. Start-up businesses that have not yet hired employees may not need this type of coverage until they begin hiring staff. However, more established companies with one or more employees would be wise to talk to an insurance provider about securing liability coverage for their employment practices right away.

Interviewee Risks

Companies that have not yet selected employees to work for them may benefit from liability coverage if they plan to interview potential staff. This is because they could face charges of discrimination by interviewees whom they choose not to hire.

Businesses of all sizes should protect their financial interests and reputation by purchasing employment practices insurance coverage.