Employment Practices Liability Insurance

Your company follows good HR practices and treats its people well. Why do you need to consider protection for employment practices liability? What are the types of claims that you could face?

Here is a brief overview of some different types of employment practices liability insurance claim examples.

  1. Discrimination

Employees can bring suit against their employers for discrimination in a civil court or by filing a complaint with their state’s commission for discrimination. Typically, a state commission will initiate an independent investigation. Discrimination claims can be based on any type of classification that is constitutionally protected, such as race, age, sex, or religious beliefs.

  1. Environment

According to Axis, an employee can claim that a supervisor created a hostile work environment with the intent to cause emotional distress, or that an employer negligently failed to prohibit an individual employee from creating such an environment. These claims could be based on verbal altercations or abuse, disparities in how different employees are treated, or repeated threats against an individual’s employment.

  1. Termination

An employee who has been terminated may attempt to seek retaliation or may genuinely believe that he or she was terminated for an improper purpose. These types of claims can seek restitution in excess of an employee’s salary and other consequential damages.