Are You Covered When an Employee Claims Harassment or Discrimination?

You probably never want to imagine a situation in which an employee, a former employee or an employment candidate sues your business for sexual harassment or discrimination (on the basis of, for example, age, sex, race or disability). Unfortunately, though, it does happen.

Sexual harassment has been in the news media spotlight a lot lately, following allegations of inappropriate behavior made against celebrities and public figures.

These days, hiring, firing and day-to-day employee management can be risky business. Responding to charges like these can cost thousands of dollars, even when allegations are found to be groundless. Many business owners may not realize—or may realize too late—that they have a gap in their insurance coverage.


You can help protect your business by adding KVIS & Coe Employment Practices Liability to your business insurance policy. Most standard EPL insurance policies offer a measure of protection against claims or lawsuits brought against your business by employees alleging wrongful acts (sexual harassment or discrimination) or wrongful termination. You can purchase and add the coverage to your business policy as an endorsement.

Businesses that routinely deal with the public may also want to consider adding third-party EPL coverage, for protection from claims or lawsuits alleging harassment or discrimination against nonemployees—typically customers, clients and vendors.


In addition to checking on your insurance coverage, you also need do all you can to prevent claims in the first place. Businesses should have harassment and discrimination policies in place and conduct employee training routinely.

Let’s be honest: As a business owner, it can be difficult to know how to address sensitive topics like harassment and discrimination. When you’re with KIVS & Coe, you don’t have to go it alone.

Questions? Talk to your KVIS & Coe Agent. As your go-to insurance pro, your KVIS & Coe agent can explain the benefits of the EPL insurance coverage and available resources, and get you a free quote.

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