Protection from risks created through employment practices


Protection from risks created through employment practices

Understanding your exposure to employment practices liability

From the moment that you start the pre-hiring process until the exit interview, you are vulnerable to an employment-related lawsuit. As a result, your business should take a hard look at whether it can afford to defend itself against alleged wrongful employment practices accusations. If not, there is an insurance solution called employment practices liability that protects against wrongful termination, discrimination or sexual harassment suits from your current, prospective or former employees. This coverage applies to directors, officers and employees, and can sometimes extend to third party liabilities.

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    Why choose employment practices liability insurance coverage?

    According to researchers, three out of five employers will be sued by a prospective, current or former employee while they are in business. While many suits are groundless, defending against them is costly and time-consuming. Employment practices liability policies provide protection from wrongful employment practices including: harassment, discrimination, actual or alleged wrongful dismissal, and employment-related misrepresentation.

    Frequently Asked Questions

    Employment practices liability (EPL) insurance is a policy used to cover your risks due to some of the most common employment-related lawsuits, including the following:

    • Wrongful termination: The discharge of an employee for invalid reasons. 
    • Discrimination: The denial of equal treatment to employees who are members of a protected class.
    • Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior.
    • Evidence of desirable employment practices and policies may be required for an EPL policy, and will certainly help defend against a suit (even for a small, home-based business with only a few employees). The underwriter may require a copy of the following policies to show that you are taking steps to reduce your risks:
      • Sexual harassment
      • Disability and accommodations
      • Equal opportunity
      • Employee discipline
      • Termination
      • Performance evaluations
      • Internet usage/employee privacy
      • Leaves of Absence
      • Internal job postings
      • Hiring and interviewing
      • Discrimination
      • Resolution/arbitration

    We offer many other insurance products

    Acumen Solutions Group offers additional types of insurance products to meet the needs of your business. We understand the insurance needs of specialized industries and build our programs to fit your individual situation.

    Related Products

    In addition to this protection, you may consider building a more comprehensive program including other insurance products for your business and assets.

    general liability insurance policy

    General Liability

    Coverage to protect from claims including; bodily injury, property damage, personal injury and other claims that can arise from business operations.

    professional liability insurance policies

    Professional Liability

    Protection for professional service-providers from the cost of defending a negligence claim, and any damages awarded in a civil lawsuit.

    Officer & Director insurance policies

    Directors & Officers

    Policy providing comprehensive coverage for “wrongful acts”, such as an error, omission, misleading statement, or neglect of a director or officer.

    Cyber crime liability insurance


    Benefits are available to your employees who are unable to work due to a work-related accident or illness.