With the heightened awareness of workers’ rights that has taken hold in recent years, business owners must protect themselves against claims made by employees, former employees, or potential employees. To meet this need, Employment Practices Liability Insurance is available that covers the company (including directors and officers) against claims of discrimination (age, sex, race, disability, etc.); wrongful termination of employment; sexual harassment; and other employment-related allegations. It is important to have this coverage in place from the very start because businesses may be vulnerable from the pre-hiring process through the exit interview, even if the employee filing a claim was never hired. Even groundless and fraudulent claims can be expensive to defend against.
NOTE: E-mails and tweets provide a lasting record of comments that some might find offensive or incriminating, which further increases the need for protection against employee claims.