Employment Practices Liability Insurance: What You Need to Know
What is Employment Practices Liability? Employment practices liability insurance is basically the insurance which covers all wrongful acts occurring in the employment process, including wrongful dismissal, sexual harassment, discrimination, breach of contract, intentional misrepresentation, harassment, unlawful termination, the Americans With Disabilities Act, and more.
What is the benefit of liability insurance? If you are running an organization or an individual business, it is very important to have an adequate amount of liability insurance. If there were to be some sort of lawsuit filed against your organization or yourself, this insurance would pay for the claim if the claim was valid.
When does liability insurance apply? It can be obtained as soon as you get hired or at a later date if your company has been around for a long time. It will not apply if the person or persons filing the lawsuit have already left your company or are still in the process of moving.
Do I need Employment Practices Liability insurance? The main reason to have it is to avoid the cost of litigation against your company or your employees. Most large corporations, including Fortune 500 companies, do not require liability coverage. However, if you are part of a small business, or a sole proprietorship, it may be a good idea to get this insurance.
Is Employment Practices Liability insurance affordable? Yes, it is a common type of insurance available to many employers.
Can I deduct my liability insurance from my tax return? No, you cannot. However, you may deduct expenses related to any attorney fees paid, court costs, and so forth.
Can my liability insurance cover lawsuits that are not mine? Yes, it does. If the lawsuit was initiated by a former employer or former client of yours, it may cover you.
How can I determine the cost of my liability insurance? You can get the information from your state's department of insurance office. They will be able to give you a quote on what your policy will cost you. Once you have the information, you can then ask for discounts if you are employed in a specific field.
Is insurance expensive? As mentioned before, it is a common form of insurance that is required by most employers. However, there are other options to help minimize its cost, such as adding employees to the plan, getting a group plan, and getting multiple policies through a single company.
Is my employer covered by their plan? If your employer does not offer you this kind of insurance, check to see if they have a separate plan.