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Employment Practices Liability Plus

An added layer of insurance to protect small businesses from employment-related lawsuits and critical incidents

Liability and critical incidents coverage for small employers

Commercial lines insurers can help protect their small business policyholders from employment practices lawsuits brought by employees, independent contractors, and volunteers, and help them prepare for or respond to workplace critical incidents that can affect their business, employees, and reputation.

Why cover both employment practices liability and critical incidents?

Employment Practices Liability Plus Insurance—EPL and critical incidents

Typical general liability insurance won’t cover alleged or actual injuries and damages related to employment practices such as wrongful termination, discrimination, retaliation, or sexual harassment. And defending those claims and lawsuits can cost small businesses time, money, and reputation. At the same time, workplace critical incidents are increasing. That’s why employment practices liability and critical incidents insurance is so crucial.

Affordable and easy to add

HSB Employment Practices Liability Plus provides comprehensive coverage at affordable premiums for small businesses. It can be easily added as an endorsement to a business owner’s underlying Business Owners Policy (BOP) or other Commercial Package Policy (CPP).

Comprehensive coverage

This insurance program covers a wide range of liability and defense costs from claims that allege unlawful employment practices brought by full-time, part-time, seasonal and temporary employees, recognized volunteers, independent contractors, and applicants. You can even add optional third-party coverage for discrimination and harassment claims brought by customers or vendors. It also covers costs to help prevent or respond to workplace critical incidents, including professional communications response, counseling services, funeral and burial expenses, family travel costs, workplace security guards, loss of business income, and preparedness planning.

Employment Practices Liability Risk Management Services

As a complimentary addition to our Employment Practices Liability coverage, your policyholders can access www.EmployerProtection.net to help prevent employment-related claims and to better understand the complex issues they face. Using these tools, employers can access important resources like a sample employee handbook, forms, training, and guidelines to help maintain a workplace that is free of harassment and discrimination.

Claim examples for employment practices liability and critical incidents insurance

Small businesses are exposed to unique liability and critical incident risks every day. Most don’t have the resources to defend themselves against costly lawsuits or manage workplace incidents. That’s where Employment Practices Liability (EPL) Plus insurance comes in. The following loss examples help show just how important this protection is.

Company

Retaliation
Settlement: $100,000/Defense: $45,500

A construction company was sued by an employee who was terminated after the company learned he had cancer. He alleged retaliation and disability discrimination for his condition in violation of the Americans with Disabilities Act.

Agency

Wrongful termination
Settlement: $55,000/Defense: $40,576

An agency filed suit against a former employee who resigned and attempted to take clients from the business. The former employee countersued, claiming wrongful termination and retaliation.

Employee

Sexual harassment
Settlement: $40,000/Defense: $12,000

A female employee at a manufacturing plant alleged that she, as well as other female employees, had been routinely subjected to sexually inappropriate comments by their supervisor.

Why trust HSB for employment practices liability insurance

Years

HSB has been protecting employers from lawsuits for nearly 15 years.

$27-$54K

Average cost

Employment practices claims can be financially devastating to small businesses, costing an average of $27K to $54K per case.

$10K

Average cost

The financial impact of a lawsuit can be high, especially to small businesses. In fact, average legal defense alone costs $10K.

A++

Rated

HSB is rated A++ (Superior) by A.M. Best Company, the largest credit rating agency in the world specializing in the insurance industry.

Additional product information

Infographic

Employment practices claims are on the rise

PDF, 179 KB

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Protect your small business policyholders from employment-related lawsuits and critical incidents

Since many small businesses don’t have staff attorneys, human resource professionals, or formal procedures to guide them in making employment decisions like hiring and termination, they are more prone to acts that constitute employment discrimination, wrongful termination, or sexual harassment. They might also be unsure about how to handle workplace critical incidents. With Employment Practices Liability Plus, they can defend themselves against these claims, protect their businesses from financial difficulties, and prepare for or manage critical incidents that may happen at the workplace.