Q: Isn't this covered under a general liability policy?
A: With rare exceptions, claims resulting from actual or alleged action bringing rise to these types of claims are not covered under general liability policies. First, the majority of these acts are not accidental, so they are not considered “occurrences.” Also, the injuries they cause do not constitute 'bodily injury' or 'personal injury' as defined under general liability.
Q: Isn't this covered under my workers' compensation policy?
A: Workers' compensation policies specifically exclude coverage for employment practices issues.
Q: I am a good manager and have a good relationship with my employees. My employees wouldn't bring a claim against me.
A:Maybe so, but many businesses, both large and small, are more likely to be sued by an employee than a third party or customer.
Q: Employment practices claims don't apply to my company because we have fewer than 15 employees.
A: Not so. In fact, the accusation of a discriminatory act is cause for legal action regardless of whether you one employee or one hundred.
Q: I use contract employees, so I have no employment practices liability.
A: Not so. “Employer” has been broadly interpreted by case law to include any personnel who works primarily in your place of business, regardless of whether or not they are directly on your payroll.