If an association has employees, the board should make sure the association's insurance has an endorsement for Employment Practices Liability (EPL). This insurance defends the association in employer-employee disputes involving the following kinds of actions:
- discrimination
- sexual harassment
- negligent evaluation
- failure to employ or promote
- wrongful discipline
- intentional infliction of emotional distress
- wrongful termination
Third Party Claims. In addition, boards should ask for coverage against third-party claims. This protects the association if vendors were to sexually harass any of the association's employees and/or members.
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