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January 22, 2016

Employment practices insurance

1 min read


One of the most complex aspects of business ownership is managing people. This means not only protecting your team members from liability within the office and on the job, but also protecting them from one another. Employment practices insurance is designed to protect a company’s employees, including officers and directors, against claims made by current or prospective employees.

What does employment practices insurance cover?

In a perfect world, all workplaces would be harmonious, but unfortunately, things don’t always work out that way. When accidental interactions come into play, the proper insurance protection is a vital part of protecting against organizational employment practices, including:

  • Libel and slander
  • Discrimination
  • Retaliation
  • Misrepresentation
  • Sexual or physical harassment
  • Wrongful demotion, discipline, or dismissal
  • Failure to promote or employ

Even the best workplaces can find themselves subject to lawsuits. With the right insurance policy, you can be sure your company is always covered.

Ever told an off-colour joke?

Of course you have, even if you didn’t realize it at the time. All companies would like to believe they are treating employees as fairly and respectfully as possible, but everyone makes mistakes. When a joke, comment, or employment decision is taken the wrong way, it’s easy to find yourself at the mercy of a team member seeking justice for a perceived wrong.

Employment law is complex

Employment law is exceedingly complicated, and on any given day you may find yourself involved in issues related to harassment accusations, whistle-blowers, or misrepresentation claims. Even if these situations have a clear resolution, some employees may not be so willing to back down. When this is the case, employment practices liability insurance can be the safety net you need when your attempts to mitigate a situation do not go as planned.

Affordable custom coverage

Despite common misconceptions, insurance coverage does not have to cost an arm and a leg. Many small businesses shy away from essential coverage like employment practices insurance simply due to the perceived expense. While this may have been the case early in the industry, today’s marketplace offers many affordable policies that can be customized to fit any organization, providing the coverage you need in any situation.

Protect your business and your employees

Protecting your business means protecting your employees. The right employment liability insurance can protect you from a wide variety of claims, ranging from sexual harassment to age discrimination, when in-house remedies aren’t enough. When a sticky situation with employees arises, it’s always better to be safe than sorry.

Questions or quotes?

If you have any questions about employment practices insurance, or would like some no obligation quotes, one of our business insurance brokers would be happy to help. Give them a shout at commercialsales@nullmitchinsurance.com or 1-800-731-2228. Insurance is our business. We’d love to hear about yours.

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