The Value of Insurance Coverage for Employment Practices

Many business owners are under the impression that liability for claims arising out of employment falls within the scope of general policies. They may also conclude that employment practices insurance is not particularly relevant to their operations because they have good relationships with their employees or they have fairly few staff members. In reality, every business owner needs to recognize the importance of this key form of coverage. A claim for an employment law violation can be very costly and exceed a business’ available resources.


Claims of discrimination in the workplace can be challenging for employers. Many states have independent commissions to investigate claims, and some assess penalties beyond the damages that a business may owe to an employee. Insurance can equip a company with the means to defend itself against claims and pay any penalties or damages if necessary.

Wage and Hour Law Violations

There are numerous federal and state obligations that companies must adhere to in how they categorize employees, calculate hours, and set wages. Insurance can help companies that are non-compliant with this intricate and continually evolving area of the law.

Ultimately, having coverage to address claims by employees is essential. No matter how carefully a business treats employment matters, having coverage is an indispensable way to effectively mitigate risk and minimize losses. 

Scroll to Top