Many businesses in Massachusetts wouldn’t be able to operate without employees, but bringing workers on board isn’t easy. Not only are there personnel decisions and training programs that must be carefully considered, but having employees also exposes a business to certain potential risks. Employment practices liability insurance helps shield businesses from many of the risks that accompany hiring workers.
Employment practices liability insurance is a specialized form of commercial liability coverage. As such, it usually helps pay legal costs, judgements and settlements that arise from covered claims.
The majority of businesses in Massachusetts that have employees or will soon bring employees onboard should have an employment practices liability policy in place. Employers can be sued over employment-related issues regardless of how many employees they have, and a business doesn’t need to actually break employment laws to be named in a lawsuit. Any employee can make allegations that are expensive to recover from.
Generally speaking, it’s wise to procure an employment practices liability policy prior to actually hiring any employees. Many policies cover certain incidents that can occur during the hiring or onboarding process, but these coverages usually only apply if the policy is in effect. This may be helpful if an employee claims they were discriminated against during interviewing, for instance. (Whether a specific policy would cover such a claim would depend on the policy’s terms and conditions.)
Of course, businesses that already have employees but don’t yet have this coverage should talk with an informed insurance agent soon about their situation. An agent who specializes in this type of insurance will be able to make knowledgeable recommendations, and they’ll know how to procure coverage in a timely manner so the business can be better protected.
These policies are generally designed to cover multiple potential employment-related issues. A few examples of incidents that policies, depending on their terms and conditions, may cover include:
Job-related injuries and illnesses usually fall under the domain of workers compensation insurance rather than EPLI. Thus, businesses that need coverage for on-the-job injuries (which is most businesses that have employees) typically have to purchase a separate workers compensation policy in addition to any EPLI policy they get. Insurance agents who are familiar with EPLI can often also assist with workers compensation.
General liability insurance policies usually don’t cover employment-related claims and lawsuits. Even though these are common risks, they’re specific to employment and normally protected against in employment practices liability policies instead.
For help finding employment practices liability insurance that meets your business’ needs, contact the knowledgeable and independent insurance agents at Dempsey Insurance. Our agents have assisted many Massachusetts businesses, including organizations large and small, with this coverage. We have the expertise necessary to help you identify the right policy for your business, and we’re able to recommend whatever policy that may be since we’re an independent agency.