Employment Practices Liability can provide coverage for directors, and officers and the corporation for claims alleging employment discrimination, harassment, wrongful termination and many other related employment torts.
Commercial General Liability does not cover legal situations with regard to employment-related claims. The EPL policy can be purchased as a stand-alone policy, or as part of a Directors & Officers Liability policy.
Employment-related lawsuits have been steadily increasing over the last few years. Small to midsize companies are often at risk because of the shortage of Human Resource controls, the absence of internal employee policies or insufficient training. Large companies are not exempt as they can also have shortcomings in their employment policies and they also have a larger employee pool that could make claims.
Remember, that a lawsuit does not need to have merit to cause a financial impact on your business. Many lawsuits are groundless, however, defending them can be costly and time-consuming.