If you are an employer take my advice immediately: obtain Employment Practices Liability Insurance, today!!!!!!!!!
You already have Workers Compensation, Liability, Errors and Ommissions and many other types of insurance to reduce your risk; however consider the following:
Not only are the numbers of employment-related claims increasing, but so is the potential financial risk to your business. Defending a wrongful termination or discrimination claim — whether you are innocent or guilty, or even if the claim is groundless or fraudulent — can be expensive. The potential exposure for a money damages award threatens your company’s financial resources.
In the face of this increased risk to your business, it is also increasingly likely that your current insurance excludes coverage for employment-related claims. Most comprehensive general liability policies specifically exclude employment-related claims. For the small for-profit business, a directors and officers policy may offer a limited form of insurance coverage, but will probably not extend coverage to the business entity. Other forms of insurance, such as fiduciary liability coverage, are unlikely to cover these types of claims:
Breach of Contract
Loss of Consortium
Invasion of Privacy
That is where EPLI coverage is a must.
Policies differ depending upon the carrier and the state in which you do business, but it is critical for you to investigate this type of coverage. There are thousands of hungry attorneys that earn their living by suing employers on behalf of employees even “without cause”. In most cases, employers settle (you could possibly lose your business) or worse: employers ignoring the possible warning signs.
Being unaware of of even the most minute labor laws is not an excuse when trying to defend yourself.
Take my advice, and do find out about Employment Practices Liability Insurance.