Employment Practices Liability Insurance Is Important
Businesses hire people all the time and many also choose to leave or are terminated every year. While most of these employee changes are standard, employment practices liability insurance is a crucial layer of protection for businesses who might have problems with current and former employees. Insurance agencies in Texas recommend employment practices liability insurance for businesses of any size.
Most businesses have some form of general liability insurance to protect them from any damages or claims brought against them due to perceived liabilities on the property. This would include a customer slipping on a wet floor or an employee getting injured on the job. For other liability coverage, insurance agents in Texas must write other insurance policies for businesses. Employment practices liability insurance is one of those separate liability insurance policies that insurance agents in Texas can write for businesses. Employment practices liability insurance protects businesses from claims or damages brought by employees, former employees, or individuals who feel they were unfairly treated in the hiring process.
Employment practices liability insurance protects businesses from perils that might occur based on claims by employees, former employees, or job candidates. These claims can include discrimination, harassment, wrongful termination, failure to hire, Fair Labor Standards Act violations, workplace retaliation, Americans with Disabilities Act violations, and other workplace violations. Insurance agencies in Texas tell businesses that damages awarded from any of these claims can be substantial, and potentially could bankrupt smaller businesses.
Claims covered by employment practices liability insurance are on the rise as well, and lawsuits by employees, former employees, or job candidates are increasingly more common. Insurance agents in Texas note that employment practices liability insurance claim defense costs are averaging $50,000 and rising. In addition, three out of every five companies are sued by former employees, which is protected by employment practices liability insurance but not general liability insurance. When a business is found at fault, the average award has been approximately $200,000 to cover the costs of damages. Small businesses are also at risk, since over 40% of employment practices claims are brought against businesses with less than 100 employees.
Employment practices liability insurance is an important line of insurance coverage for every business. Insurance agencies in Texas recommend employment practices liability insurance to protect from many potentially costly claims not covered by general liability insurance. In addition, employment practices liability insurance protects large and small businesses from many claims brought against them from current employees, former employees, and job candidates that feel they have been wronged.
by: Boardwalk Insurance