Whether you’re a small, large or medium-sized company, the possibility of getting sued by one of your employees is always there. The most common grounds for lawsuits are sexual harassment and wrongful termination. While many of these suits lack merit, obtaining a good lawyer to defend your company can cost astronomical figures in legal fees, even if the case against you is eventually dismissed.
This is why you should consider purchasing Employment Practices Liability Insurance. This type of coverage will help pay for your legal defense, and can be a lifesaver. Policies typically cover employers against lawsuits which allege violations of:
- Title VII of the Civil Rights Act of 1964
- The Age Discrimination in Employment Act of 1967
- The Americans with Disabilities Act of 1990
- The Civil Rights Act of 1991
While there certainly are cases in which employees are wrongfully discriminated against, the fact is that we live in a litigation-happy culture in which some people resort to filing lawsuits over the most minor of perceived slights or offenses. If you do not have the proper insurance coverage, your company could literally go bankrupt because of a misunderstood joke or poor choice of words.
These types of policies vary in price depending on how many employees a company has and what level of protection is needed. Whatever the premiums cost, they are a bargain compared to the legal fees your company would have to payout to defend itself against a lawsuit.
It’s not a good idea to wait too long to look into obtaining Employment Practices Liability insurance. These policies usually operate on a “claims-made” basis, meaning that policyholders can only receive benefits if they were covered both at the time of the alleged triggering discrimination or harassment incident and at the time when the claim is actually filed. So contact an insurance agent today to ensure your company is adequately protected.
Seth Jonas has been in the insurance business since 1992. Our firm’s philosophy is to make all clients feel that they are the most important client, no matter what the size of the account.
Seth Jonas
S Jonas Associates LLC
450 Seventh Avenue #2208
New York, NY 10123
Telephone: (212) 736-9490
Email: seth.jonas@verizon.net
Website: sjonasinsurance.com
The Insurance Pro 