There are many reasons why an employee might make a claim against his or her employer. Typical allegations include wrongful termination, discrimination, harassment and even failure to promote. In in an economic downturn, employers tend to have layoffs, and wrongful termination allegations can follow.
We also know that humans are prone to making comments that can be viewed as inappropriate by a coworker whether intentional or just a poor choice of words. Occasionally, a poorly phrased comment or two can lead to harassment allegations. Whatever the reason, Employment Liability claims are on the rise.
An Employment Practices Liability Insurance (EPLI) policy provides insurance against claims and lawsuits brought against an employer, its officers, directors, employees and managers. These policies generally cover allegations in the following areas:
- Discrimination - including age, sex and gender
- Sexual harassment
- Invasion of privacy
- Emotional distress or mental anguish
- Wrongful termination or discipline
- Negligent compensation, promotion or hiring decisions
- Employee benefits mismanagement
- Breach of contract for employment
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