Why You Need Employment Practice Liability Insurance

What will you do if you get sued by an employee? At Nielsen Professional Insurance, Inc., we recommend that all businesses have coverage to protect themselves against any claims from employees alleging discrimination, harassment, wrongful termination, failure to promote, or other employment-related issues. While most large companies have substantial Employment Practices Liability Insurance coverage to protect themselves from an employment lawsuit, many small or new businesses don’t – and they are often the companies most vulnerable to an employment claim. Most of these businesses don’t have a legal department to defend them or in many cases even an employee handbook to detail the policies and procedures that are used for hiring, terminating and promoting employees. This leaves them open to potential lawsuits.

What Does Employment Practice Liability Insurance Provide?

First and foremost, Employment Practices Liability Insurance gives you peace of mind. As soon as you decide to hire employees, you need coverage. This is because new employees pose an extremely high liability risk that begins the moment you interview them. If you choose not to hire an applicant, that individual could allege discrimination based on factors including age, sex, race, or disability. And if you do hire that person, but then later fire them, he or she may decide to claim wrongful termination. Even if the claim is groundless, you are left with legal fees and the stress of battling them in court – unless you have Employment Practices Liability Insurance.

This insurance provides coverage for you and your company against all claims made by current, former, or potential employees. Claims you are protected from include those alleging discrimination, and they also cover claims of wrongful termination, harassment, and other employment issues, including breach of contract and even failure to get a promotion.

Employment Practices Liability Insurance simply makes sense for employers in both small and medium-sized businesses. Nielsen Professional Insurance, Inc. is a family-owned and operated company that offers you over 25 years of experience in helping clients choose just the right coverage to provide them with the peace of mind they need to succeed in their line of business. To get started, just call us at (877) 856-9231 or submit your information online for a customized quote today.