When Should Businesses Get an Employment Practices Liability Policy?
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.
What Sorts of Claims Does EPLI Cover?
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:
- A manager doesn’t tell applicants that background checks will be run on them
- An interviewer asks a question that’s prohibited by law during the interview process
- Female employees discover that men in the company are compensated more
- Interns aren’t paid for their time, but they should have been per employment laws
- An older employee is fired because of their age
Does EPLI Cover Job-Related Injuries?
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.
Are Employment-Related Claims Covered Under General Liability Insurance?
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.
How Can Massachusetts Businesses Get an Employment Practices Liability Policy?
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.
