What Is Employment Practices Liability Insurance?

The insurance world can sometimes be a little confusing.  There are numerous policies and specific industry terms that can leave anyone a bit overwhelmed and perplexed.  Staffing agency insurance is incredibly unique and trying to understand your specific needs on top of the already confusing insurance world only compounds the problem.  Fortunately, here is some information on what employment practices liability insurance is and why you need it.


Employment practices liability coverage is created to defend the staffing agency against claims brought by an employee for accusations including discrimination, sexual aggravation or harassment and unlawful termination.  There are also additional allegations that are included by this specific type of coverage.  This type of policy offers coverage for both in-house employees as well as contract or temporary employees that are placed with outside companies.

Why You Need It

Insurance is absolutely essential in today’s business world.  No matter how conscientious or thoughtful you may be, bad things and unfortunate mistakes are bound to happen at some point in your business career.  Having adequate insurance in the staffing industry is definitely crucial as you know the constant change and turnover of employees requires that you keep your company financially safe from unlucky mishaps.

Now that you know what employment practices liability insurance is and why you need it, be sure to partner with an insurance provider who will offer you the right coverage for your agency.