Small businesses should be worried about discrimination laws and/or other employment-related charge against them because receiving a claim against your company can cost a lot of money that you do not have. Only a miniscule amount of companies actually purchased employment practices liability insurance, when all businesses should carry it. Have a claimed filed against you without insurance can usually cost you $22,000 to $40,000. Many small businesses do not realize how large the cost can be, so, they figure that their chances of getting a claim filed against them are so slim and the cost of a claim is so small that they do not need to purchase special insurance. Try again; it does not usually work that way. Nowadays, this coverage can usually be added as an endorsement to general liability policies or a business owner’s policy. Such claims can include wrongful termination, race discrimination, retaliation, age discrimination and sexual harassment.
Along with small businesses, nonprofit organization can face these same lawsuit risks. Employment practices liability insurance can also protect nonprofits from lawsuits filed against the nonprofit by employees on volunteers. Click here for more information on requesting an employment practices liability insurance quote for your nonprofit or contact your insurance agent.