One of the best things a business owner can do to protect his or her business is to have a business insurance program that covers your business in the best way possible. Your business insurance program should include Employment Practice Liability, and Directors and Officers Liability insurance. These coverages can often be bundled together through a management liability policy.
Employment Practices Liability (EPLI)
EPLI insurance provides coverage for claims involving employment harassment and discrimination in the employee/employer relationship. Examples of these kinds of claims are wrongful dismissal/termination, sexual/racial/disability harassment, sexual/racial/disability/religious discrimination, employment-related libel, slander, defamation, and invasion of privacy, wrongful failure to employ or promote, and retaliation.
Directors and Officers Liability
Directors and Officers Liability insurance protects your business, owners, executives, and managers, if individuals, competitors, or third parties make a claim for damages. If your business causes financial loss to a third party, your directors can be sued. Directors and Officers insurance is an effective solution for the risks facing organizations. Directors and Officers Liability Insurance will cover administrative, civil, and regulatory proceedings based on actual or alleged acts, errors, omissions, misstatements, neglect, or breach of duty committed by, or allegedly committed by, a director or officer while acting within the scope of their duties.