Employment Practices Liability

Charges of wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations are a growing concern of business owners today. Insurance coverage is available to defend and pay judgments on these charges. This coverage usually requires a separate policy. Even if the employer is not guilty of the charges, defense costs average more than $40,000.

Employment Practices Liability (EPL) protects business owners against employee suits for rights protected under laws and protections brought under the following Acts:

• Title VII of the Civil Rights Act of 1964
• ADA (Americans with Disabilities Act) of 1990
• Civil Rights Act of 1991
• ADEA (Age Discrimination in Employment Act) of 1967
• Family and Medical Leave Act (FMLA)

The Equal Opportunity Employment Commission (EEOC) interprets and enforces these laws. More recently, with the expansion of privacy law(s), employee privacy concerns have heightened as private employee data is stored electronically. This is not always covered under an EPL policy, but there are cyber liability and network security policies for protection.