There are two main kinds of employee liability. There is employee benefit liability and employee practices liability. These are two very different policies and you have to talk with your insurance provider to find out which policy is right for you.
This type of liability insurance protects you from allegations of negligence in regards to the employee benefits. For example, if you invest you employee’s money, you are liable for how that invest turns out. If the investment flops, you would be liable for their money and for protecting yourself from their lawsuits. With employee liability, the liability is take away from you.
This insurance protects your from allegations made by employees regarding your treatment of them. Commonly this insurance protects your business from allegations of:
- Sexual Harassment,
- Invasion of Privacy,
- Wrongful Termination,
- False Imprisonment
- Breach of Contract and
- Emotional Distress.
When you have employee practices liability, you don’t have to pay the defense expenses.
Talk With Your Insurance Provider
Figuring out which type of employee liability you need can be a challenge. Depending on what your business does, you may even need both types of insurance. In order to really figure out what you need, you have to talk with your insurance provider. They’ll be able to answer all of your questions and ensure that you are fully covered.