Employment Practices Coverages

In the last twenty years, business risk to Employment Practices claims has emerged as one of the most troubling business exposures. Professionals in this field observe that “it is not a matter of if, it’s a matter of when” in describing when a business will be faced with such claims.

While most claims are ultimately resolved in favor of employers, the defense costs involved in hearings, appeals and court proceedings easily can reach $100,000. or more per claim. Recognizing that most employers operate without professional Human Resource departments, most insurers that offer this coverage also provide extensive risk management tools to their insureds. These tools usually include a hot line to law firms that can provide timely advise on hiring practices, employee termination, reports of sexual harassment, etc. These risk management services are included in the cost of the insurance product. To purchase such services independently likely would cost more than the cost of the Employment Practices Insurance coverage. Talk with your PA&T professional today about securing this important insurance coverage.