Even if your business has a minimal number of employees, you cannot entirely avoid the risk of an employment discrimination lawsuit, whether based on sex, race, age or any one of a number of other characteristics. This is typically one of those exposures, much like the exposure to theft by trusted insiders that employers tend to think "won't happen here."

Unfortunately, even if you have an excellent risk management program, an employment practices lawsuit can happen in any business. For example, you may fire a worker for poor job performance only to find that he or she then files a lawsuit for the termination of race, religion, age or some other protected characteristic. Regardless of whether the employee can ultimately prove the charges, you may involved in a legal defense for a long time. Even if you think you've done nothing wrong, you could be found liable for discrimination and responsible for the payment of a large damage award.

The Employment Practices Liability Endorsement provides coverage for violations of seven different federal anti-discrimination statutes named in the endorsement, as well as for violations of similar state and local statutes.

You must choose a supplemental limit and deductible for this coverage that is separate from any of your policy's other limits. As part of the contract, you give the insurer the right to defend against any claim. The insurer may offer to settle a claim. If you do not consent to the settlement, the most the insurer will pay on the claim is the amount it offered in settlement.

Experience the comfort of having your own Risk Management Team by calling our office today!