Does Your Business Insurance Cover Discrimination?

In today’s litigious society, it’s not uncommon for employees to file discrimination lawsuits against your business. Perhaps an employee felt as though she didn’t get that big promotion because she was pregnant while the decision was made, or perhaps an employee felt like he was being excluded from projects because of his ethnicity. Whatever the case, these lawsuits can get messy and expensive, so it’s best to ensure that your business insurance has you covered.

Many business owners think that discrimination is covered by their general liability insurance, but this isn’t always the case. General liability insurance covers cases of bodily injury, property damage and personal/advertising injury. Discrimination doesn’t often fall under these categories.

While general liability insurance doesn’t specifically exclude discrimination, many insurance providers attach an exclusionary endorsement called an employment practices liability exclusion. So even if an employee’s case falls under a mental injury, which some insurers will cover under general liability, this endorsement may void the claim anyhow.

For the best protection again discrimination lawsuits, ask your independent insurance agent about employment practices liability insurance. Some package policies, like a business owner’s policy (BOP), may come with a limited amount of this coverage; however, if your business isn’t already protected, you can add on the coverage as either an endorsement or a separate policy.

Learn more today. Call Buschbach Insurance Agency at (708) 423-2350 for more information on Oak Lawn business insurance.

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