Employment Practices Liability Insurance is a relatively new form of business line insurance however every business employing people should absolutely have this coverage. Claims made against employers are increasing during these difficult economic times. Wrongful termination lawsuits are on the rise as businesses have had to lay people off over the past year or so. Letting people go, either via termination for cause or reduction in force, in full accordance/compliance with accepted human resources practices is very difficult for most businesses; even those with Human Resource professionals in-house. The exposure for employers is significant and appropriate coverage should be maintained.
If you are unfamiliar with this type of insurance and/or uncertain you have appropriate coverage, I strongly encourage you to contact your insurance broker today to discuss your company’s exposure and how best to address it.
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