If you think fair employers don't get sued, think again.

Even though you are an honest and fair employer, one accusation of unfair employment practices could cost you thousands of dollars. Charges ranging from age or sex discrimination to wrongful termination, even unfounded charges, can hurt or destroy a business.

Allegations against employers are occurring at an alarming rate. Laws like the Americans with Disabilities Act, the Civil Rights Act of 1991, the Family & Medical Leave Act, and the Age Discrimination in Employment Act have increased financial risk for most businesses. Employment laws and regulations are complex. Your directors, managers, supervisors and employees may not fully understand the ins and outs of these laws and may be unaware of new rulings and interpretations.

Even innocent employers go to court

While million-dollar jury awards against large corporations make the headlines, thousands of other small and medium size businesses are also experiencing difficult times. Answering a groundless complaint filed with the Equal Employment Opportunities Commission can cost $7,500 to $15,000. The average defense attorney fees for unsuccessfully defending against sexual harassment charges are over $150,000 (Employment Alert, 10/5/95).

Protection is within your reach

Until recently, only large businesses were able to affordably insure against the risk of employment practices claims. Now employers of all sizes can insure against this risk, with Employment Practices Liability Insurance (EPLI).

Vital protection now and in the future

Our broad definition of "claim" means that EPLI can provide coverage to your business when current employment statutes change or when new federal, state or local laws are enacted.

EPLI provides coverage and defense costs under the terms of your policy as soon as an administrative charge or a lawsuit is filed against you by any past, present or prospective employee.

This coverage protects your business (and your employees) from charges that an employee's rights were violated. From the moment you consider hiring an applicant, during active employment and even when you provide references for a former employee, EPLI covers charges you may be vulnerable to:

Wrongful termination of employment.
Breach of any oral or written employment contract.
Employment-related misrepresentation.
Violation of any federal, state or local law that concerns employment discrimination, including sexual harassment.
Wrongful failure to employ or promote.
Wrongful discipline.
Wrongful deprivation of a career opportunity
Negligent evaluation
Employment-related personal injury, including false arrest, detention or imprisonment, libel or slander and violations of a right of privacy
Wrongful failure to grant tenure.
Employment-related wrongful infliction of emotional distress

Every employee from clerk to CEO is covered.

Our policy form broadly defines who is insured:

The business
Partners and managers
Directors, officers and stockholders
All employees, including supervisors
Estates, legal representatives and heirs
Newly acquired or formed organizations

EPLI meets your business needs.

EPLI covers arbitration and civil or administrative proceedings, not just lawsuits.
This is a "pay on behalf of" coverage with a "duty to defend." We will pay defense Costs up front, subject to a deductible and the limit of insurance.
Some companies' policies require policyholders to share defense costs, through co-payments. Ours doesn't have to
Our underwriter can be instructed to settle a claim only with the your consent.
EPLI's claims-made form allows you to preserve coverage by reporting a wrongful act during the policy period, even though the resulting claim is actually made after the policy expires.
An automatic 60-day extended reporting period can be included to cover claims reported after the policy expires. Optional extended reporting periods up to three years are available.
You and your business can select limits starting at $500,000 and up to $1,000,000
Coverage is provided no matter where in the world the wrongful act takes place or where the complaint or suit is filed.

We can help you prevent mistakes and allegations.

Along with your policy, you will receive a booklet of practical advice for reducing the risks associated with employment practices. It tells how to avoid discrimination when advertising employment openings, what you can ask in an application or interview and how to handle requests for references about past employees.

You will also receive sample personnel policies on sexual harassment and anti-discrimination, as well as an employment application that you can adapt to your operations.