Employment Practices Liability Insurance Explained

InsureNewMedia - professional liability insurance for IT firms
Specializes in Professional Liability Insurance Solutions for IT, Software, and Internet Businesses
CoveragesContact Us5/13/2008     
Home
About Us
Coverages
Contact Us
Apply Now for a Quote
 

Employment Practices Liability Insurance Explained

 
Free Quote

We are current closed for new business applications. If you are a technology firm, we recommend Techinsurance.com. If you are a financial firm such as a Hedge Fund or Investment Advisor, we recommend InsureHedge.com. If you are any other business category, unfortunately we can not help you.

 
Already Registered?
Email Address:
Password:
Forgot your password? Click here
 
  • Access to a wide range of specialty technology insurance products from carriers worldwide
  • 4th generation family owned - since 1895
  • Experts standing by and professional claims handling
  • Licensed in 45 U.S. states & DC.
  • We represent about 4,000 clients in the U.S. and worldwide
  • Our mission is to build and maintain long-lasting relationships with our clients and to provide competitive, high quality insurance oriented products
  • Our specialized professional liability insurance programs protect against and minimize professional liability risks
 
What is Employment Practices
Liability Insurance?

Employment Practices Liability Insurance is a relatively new form of liability insurance. It provides protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. It covers your firm, including its Directors and Officers.

 
When do I need Employment Practices Liability Insurance?

Employment Practices Liability is needed as soon as you start to hire employees. Most investors and directors will require that you carry this coverage as part of your Directors and Officers Liability insurance since they can also be held liable in suits relating to employment practices.

 
Why do I need Employment Practices Liability Insurance?

Cases against employers are on the rise. It is estimated that three out of five firms will be sued by an employee. Companies are finding that they are vulnerable from the pre-hiring process through the exit interview, even if the employee was never hired, or only at the company a matter of days.

It can happen to ANY firm. We have all experienced it. It could be a joke told in the break room, an employee you had to fire, a “friendly” programmer, or that person you chose not to hire. Every employer faces the reality that it will be the target of legal action from past, present and prospective employees. Even if the claim is groundless or fraudulent, the defense of a suit can be expensive in time, resources and financially.

New technology firms are especially vulnerable. Newer and fast growing companies are often prey to these types of claims because their management team has not yet designed or implemented procedures for hiring, firing, and disciplining employees.

Welcome to reality. Just because you might not have told the off-color joke to the new employee on her first day, your Independent Contractor, or client, might not think the same way. It's still your firm that gets sued, and you can't always monitor every hire, termination, or conversation that takes place in your office. Nor can you always know who will sue, and you can't always prevent a disgruntled employee from lying or exaggerating just to “get even” with your firm.

 
Employers face a growing multitude of serious employment practices liability exposures
It’s no longer off the radar screen. It’s front page material. More and more companies are finding out the hard way just how complex the employment relationship has become. Employers face a growing multitude of serious employment practices liability (EPL) exposures in their day-to-day interactions with employees.
Insurance for…
  • ASP (Application Service Provider)
  • Computer Consulting
  • Data Processing Services/Programming
  • Disaster Recovery
  • E-commerce/Internet business
  • Hardware OEM Manufacturer
  • Information Services/Sites Providers
  • Internet Media/Publishing/ Advertising
  • LAN/Network management
  • Online Transactional Business
  • Search Engine/Portals
  • Software Developers/ Publishers
  • Systems Maintenance/ Installation
  • Temporary Staffing Agency
Full List of Eligible Businesses
 
Liability Insurance Products

As one of the largest and fastest growing insurance brokers specializing in technology insurance, InsureNewMedia can offer a complete portfolio of professional liability insurance products:

Professional Liability Insurance Coverages
 
© 2008 InsureNewMedia.   All Rights Reserved. Privacy | Legal Notices