Employment Practices Liability

Commercial General Liability policies exclude employment related claims and their related defense costs; hence the reason to consider Employment Related Practices Liability insurance. Coverage benefits typically include:

Wrongful Termination - Breach of an employment contract, other than an express written or oral agreement of employment, when terminating an employment relationship; or failure to exercise legally required duty and care on the part of the employer when terminating an employee relationship.

Discrimination - By current, former or prospective employees who claim they were the victim of employment related discrimination on the basis of any federal, state or local law which prohibits such discrimination by employers. These actions can arise out of demotion, failure to hire or promote, termination of employment, or disciplinary actions; typically alleging discrimination based upon color, race, age, religion, gender, pregnancy, national origin, or handicapped or AIDS related issues.

Sexual Harassment - Allegations by people who claim they were subject to sexual harassment in the workplace. Many of these claims point to rights granted employees in the Civil Rights Act of 1991.

Other - The three issues above are the most common concerns covered by this type policy. However, the following employment related claims may also be covered by some policies if the allegation is tied to one of the above causes of action: whistleblower, libel, slander, or other defamation, invasion of privacy, mental anguish, infliction of emotional distress, loss of consortium, breach of contract, negligent hiring or supervision.

Exclusions include, but are not limited to:

• Intentional violations
• Bodily injury or property damage
• Lockouts, strikes or similar actions resulting from labor disputes or negotiations
• Violations of workers compensation, unemployment compensation, disability benefits or social security laws, or COBRA, ERISA, the Occupational Safety and Health Act, or similar federal, state or local laws.
• Employment termination claims when or after the Insured files, or is placed in bankruptcy receivership liquidation, conservatorship or reorganization; or closes one or more plants or places of business; or merges with or is acquired by any other business entity.