Employment Practices Liability for Individuals & Families

If you currently employ anyone, you need Employment Practices Liability coverage.  In fact, you should have the coverage in place prior to interviewing for a position.  This is true because if, in the interviewing process, you elect not to hire a candidate, they may allege discrimination. It happens more than you might think. Everyday we hear of domestic employees and employment candidates filing lawsuits against their employers or potential employers and seeking millions in damages.  The allegations are most often for wrongful termination, employment discrimination or sexual harassment.  Even if the allegations are false, legal costs can be substantial.  The best way to protect yourself, from an insurance standpoint, is to purchase Employment Practices Liability Insurance. 

Typically, the coverage can be added to your umbrella/excess liability policy or your family office policy as an endorsement.  Coverage may vary by insurer but in general terms include:

• Liability for damages awarded
• Defense Costs including administrative hearings or proceedings costs
  
• Reputational Liability Costs to defray the cost for an Employment Practices Crisis Management or Public Relations firm hired to mitigate or repair damage to your reputation

Your selection in hiring and employment practices may be sound but misunderstandings can still occur.  Should a misunderstanding lead to a lawsuit, it can undermine all you have worked so hard to achieve and damage your good name.