Employment practices is a type of business insurance product most companies need. It is a bit different than your average general liabilities policy. If you are an employer, having it can help to minimize claims made against your company, some of which can amount to thousands of dollars. Here are a few reasons why it can help you today.
#1: It Covers Discrimination Claims
One of today’s most intense conflicts in the workplace comes from discrimination claims. Most companies do not tolerate it. Yet, it can happen in even the most well-established businesses. Even if a claim has no validity, discrimination claims can be costly. Proving yourself innocent or not negligent can be difficult to do. This type of business insurance can help minimize these risks. It offers coverage for claims related to:
- Disability or other forms of discrimination
If someone were to claim you discriminated against them, perhaps not hiring them for a reason like this, you could face a significant lawsuit. Employment practice liability insurance can help cover those losses.
#2: Harassment Claims
Harassment is a diverse topic, one that encompasses a wide range of potential risks for a company. Harassment of employees, by management, owners, or other employees, can be risky. Yet, you may not have any control over what is happening. A harassment claim, whether related to race or religion or sexual harassment, can be costly to pay out. Having the proper business insurance is critical to not only prevent having to pay for these costs out of pocket but also have the legal support to fight them.
#3: Wrongful Termination Claims
If someone does not do their job, you may want to fire them. However, there are limitations on when and how you can terminate a person.
For example, doing so due to prejudice can be illegal. It can also lead to costly claims your company may have to pay. If there is any evidence to support a wrongful termination claim, it can be difficult to fight. Your employment practices insurance can help cover these risks.
This type of business insurance is beneficial to most employers. These types of risks, along with others such as failure to promote, can happen in almost any company. Having this form of liability insurance may mean protecting your company from some of the most worrisome of risks. No matter how hard you work to protect your company and workers, mistakes or claims like this can occur. Insurance is there to help cover those losses. Call the business insurance experts at (817) 563-5555>
Also Read: Understanding Completed-Operations Coverage