employment practices insurance coverage

What Does Employment Practices Insurance Cover and Exclude?

  [caption id="attachment_109" align="alignleft" width="300"]employment practices insurance coverage employment practices insurance coverage[/caption] Proper employment practices can be a difficult thing for even the most conscientious business owners and managers to ensure, simply because so many actions and mistakes fall into this category. Fortunately, the right employment practices insurance coveragecan protect a business against poor practices that are common or difficult to eliminate completely.   Typical Areas of Coverage   An employment practices policy can offer protection against allegations on the part of employees ranging from managers to entry-level workers. Both sexual harassment and general harassment can be covered. Discrimination in hiring, pay, or treatment often falls under employment practices insurance coverage. Wrongful termination and wrongful discipline are also usually covered. Some policies also protect against employee claims of emotional suffering, privacy invasion, and damage to personal reputation. Even third-party claims made by customers or vendors can be covered under an enhanced policy.   Excluded Issues and Incidents   In general, employment practices insurance will not cover practices if they violate state laws, federal laws, or regulations imposed by bodies like the Occupational Safety and Health Administration. Some policies may also limit coverage during unusual circumstances, such as mergers and acquisitions. Policyholders should be sure to understand the finer points of any policy they are using or considering.   Learning More About Insurance Options   Businesses that lack employment practices insurance coverage or have doubts about the adequacy of the policy currently in place should not delay speaking with an insurance agent. The cost of employee allegations can do serious harm to the reputation and finances of a business, but the right insurance coverage can significantly reduce this risk. 

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