Employment Practices Liability Overview
Recent suits against Texaco, Citibank, Morgan Stanley and Mitsubishi have focused concern over allegations of discrimination in the workplace.
This loss exposure is a growing concern for risk managers as even low-profile companies can get hit. Of course, most community banks feel relatively immune from such suits. But insurance risk managers point out that changes in the business climate are helping generate such suits.
Despite a banks best efforts, job applicants, employees or government agencies can sue you anytime they feel you've dropped the ball. And, there are plenty of resources available to anyone intent on bringing a legal action... charges of Title VII civil rights violations; violations of the Americans with Disabilities Act (ADA); sexual harassment; wrongful termination and individual claims of discrimination are common.
Even if the charges are unfounded... the allegations must be defend. For example, the 1991 amendments to the Civil Rights Act give job applicants and employees the right to a jury trial in discrimination suits.
First Monetary Mutual Limited can provide comprehensive Employment Liability coverage -- including institution protection -- through our new program reinsured with the CNA Insurance Group.
The coverage will protect banks and their directors and officers from claims filed under the Americans With Disabilities Act, the Civil Rights Act, the Age Discrimination Act and other such laws covering wrongful discharge and other matters pertaining to the employment relationships.
Coverage is available at limits from $100,000
to $2 million. The minimum premium is $1,000 for a $100,000 limit of coverage.