It is so common today that all businesses are at risk. That is why Employment Practice Liability Coverage is so 
essential. You have probably experienced firsthand or heard about a situation where an employee has filed a lawsuit against a company for unfair employment practices.
The laws to protect employees are in place for a reason; so is employment practices liability. This policy can protect you from a significant expense should you become the target of a lawsuit for discrimination, wrongful termination, sexual harassment, or other employment-related issues.
Many employers believe they do not need this sort of coverage because they treat employees fairly, never discriminate, and avoid inappropriate workplace actions. Unfortunately, this does not protect you from a lawsuit. No matter how hard you try to keep your company a fair place where employees feel they are treated right, mistakes can be made. All it takes is a misunderstanding to put your company at risk. Worse, although none of us like to think about it, the fact is that sometimes unhappy people file completely unfounded lawsuits against their employers.
Whether or not you feel a lawsuit is founded, you must defend yourself if it occurs. And the odds that it will happen at some point are not in your favor. No matter how hard you work to avoid it, people cannot be controlled, and if you do face a lawsuit, you will be glad to have financial protection for yourself and your company.
An employment practices liability policy is designed to cover you when a lawsuit related to employment occurs. Anyone who has employees-no matter how many employees-needs, such a policy. Without it, you leave yourself and your company vulnerable to an expensive lawsuit that could seriously hurt you even if you win in court.
Choosing not to carry this essential coverage is like saying you don’t need auto insurance because you don’t plan to be in a car accident. No one expects to be in a car accident, just as no one expects to be sued. But if and when that day does come, having the right insurance can make all the difference. You can help your company to defend against an unfounded suit or to deal with the fallout of a mistake that leads to a loss in court.
It is the reality of running a business that you take on some risk in hiring employees. Insurance protects you from the many situations you can’t predict, and employment practices insurance is necessary. Contact us today for more information.
