Employment-Related Practices Liability Insurance

Employers may be sued by employees, former employees, and job applicants alleging wrongful termination, discrimination, sexual harassment, failure to promote, failure to hire, and other employment-related practices. In recent years, the number of such suits has increased, but the median awards for damages have declined. The median award reached a high of $266,024 in 2008 but declined to $65,460 in 2012 and $109,300 in 2013.4 General liability insurance policies typically exclude or offer limited protection against liability arising out of the employment practices of employers. Many insurers now offer a separate policy or have specific endorsements to deal with these exposures.

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