Restaurant Guard™ Introduces Employment Practices Liability Protection for Restaurants

Reinforcing its commitment to offer restaurant owner-operators with the most complete range of coverages that address real-world needs, Restaurant Guard Insurance today introduced Employment Practices Liability Protection to its portfolio of coverage areas, according to Vice President and Program Director Crystal Jacobs.

“Over the last few years the number of lawsuits filed by employees against their employers has been rising,” Jacobs said today. “While most suits are filed against large corporations, no company is immune to such lawsuits, including small and medium-sized independent restaurants. Our new Employment Practices Liability Protection is designed to provide restaurant owners with a broad range of coverage areas that specifically address the employee litigation threats that restaurant owners face today.”

According to Jacobs, employee accusations like sexual harassment, discrimination, and wrongful termination remain consistent threats, but businesses can’t ignore the risks of overtime pay violations. Eligible employees alleging unfair compensation presents cumulative risks for restaurant owners under the Fair Labor Standards Act (FLSA). With their Wage and Hour Insurance coverage, Restaurant Guard covers the cost of defending against these potentially expensive claims, helping businesses protect themselves from the dangerous world of labor risks. 

Additional areas include Breach of Employment Contract that covers defense expenses and penalties resulting from an alleged breach of an implied contract of employment. 

Negligent Evaluation indemnifies the insured for fines and expenses that may incur following a claim in which an employee plaintiff asserts that the employee’s performance evaluation was excessively negative, unfairly low, or otherwise inaccurate and therefore did not reflect the employee’s actual, higher level of performance. Failure to Employ or Promote provides coverage for claims alleging that a qualified employee was denied a promotion, often coupled with other claims of discrimination. Wrongful Discipline provides for a defense against employees claiming that they were disciplined for an infraction that did not occur or that they received excessive disciple for an infraction they committed. Employment Practices Liability Protection also includes costs related to alleged deprivation of career opportunity, wrongful infliction of emotional distress and mismanagement of employee benefit plans.

“Small and medium sized restaurants continue to be sued every day by current and former employees,” Jacobs emphasized. “Unlike their larger counterparts, many of these restaurant owners lack a substantial defense against employment practice claims. We pledge to continue evolving and expanding our policy offerings to ensure that restaurants of all sizes are protected against the many risks they face today.”