What does Negligent Retention mean? Read on to discover the definition & meaning of the term Negligent Retention - to help you better understand the language used in insurance policies.
A type of employment-related claim in which a plaintiff asserts that an employer failed to discharge an employee who management knew, or should have known, had a propensity toward violence, sexual harassment, or dishonesty. For example, negligent retention claims are often made after an employee commits a mass shooting at a plant or office. Injured workers then sue the employer, alleging that the company was negligent in not terminating the employee sooner. The basis of the claimants' argument is that on prior occasions, the employee had provided clear evidence of a propensity for such violence (e.g., he had issued threats or brought a weapon on to the company's premises). Coverage for such claims is available under employment practices liability insurance (EPLI) policies.
We hope the you have a better understanding of the meaning of Negligent Retention.