Things are Changing
In 2008, most employment practices claims came from wrongful termination. By 2012, the majority of claims were the result of retaliation, and race & sex discrimination (including harassment and pregnancy discrimination). Since 2017, wage & hour claims have moved to center stage.
Today, employment practices issues continue to rank high as the most popular and dangerous workplace claims. According to industry experts, retaliation and sexual harassment claims, gig worker classification, the gender pay gap, and medical marijuana usage are among the top trending employment practices litigation cases in 2020.
Understanding a few key facts about employment practices insurance can help not only reduce risk but also align expectations should a claim occur.
What does it cover?
Employment practices liability insurance (EPLI) protects businesses against allegations brought by employees or third parties who believe that their employment rights have been violated. EPLIcoverage generally includes the following: sexual harassment, discrimination, wrongful termination, negligent evaluation, failure to employ or promote, wrongful discipline and other wrongful acts arising out of the employment process
Is it required?
Generally, investors and board members require that employment practices liability insurance be carried.
What doesn't it cover?
All insurance policies have coverage exclusions and limitations. Here are a few things that employment practices liability insurance policies may not cover: wage and hour allegations unless coverage is specifically endorsed; immigration violations unless specifically endorsed; criminal acts; and anything that was a known circumstance or situation prior to the purchase of the insurance.
Employment practices issues (discrimination, harassment, etc.) continue to rank high as today’s most popular and dangerous workplace claims. VANTREO reduces employment practices risk exposure and cost through corporate culture training and compliance. We employ HR certified professionals and work with leading labor law specialists in providing you with the coverage expertise, management coaching, corporate culture training (including AB1825) and the claims advocacy needed to help you protect your organization and its people.