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EMPLOYMENT PRACTICES LIABILITY INSURANCE What You Need To Know About Employment Practices Liability Insurance I n 2016 in the United States alone, the Equal Employment Opportunity Commission (EEOC) received almost 100,000 complaints regarding workplace discrimination in private, federal, state, and local government workplaces. It can be deduced that the Canadian workplace is seeing a similar increase in activity, despite our less litigious nature. Since the financial crisis over a decade ago, Employment Practices claims filed against employers have skyrocketed. Every 26 employer faces the risk of an Employment Practices claim, regardless if you have five employees or 500. If an employee files a suit against your company and you end up settling outside the courtroom, that settlement will come directly from your bottom line. If the claim proceeds to court where you are required to defend yourself and your company, the defence costs can quickly become paralysing. This is why Employment Practices Liability Insurance is such an important coverage. You may think you are already carrying coverage that will protect you, but confirming that with a broker is the best way to explore your possible risk and ensure you have coverage. General Liability policies carried by most businesses do not include coverage for Employment Practices Liability, and when they do, it is a small amount which will be quickly eroded by defence costs. Directors and Officers coverage can be blended to include coverage for Employment Practices, but you need to review if the limits are shared between