EPLI Insurance in Massachusetts
What is EPLI Insurance?
Employing workes comes with its set of challenges and risks, not the least of which is potential discrimination claims. Claims of wrongful treatment can have devastating consequences. To help protect against such claims, Massachusetts employers can get EPLI insurance.
EPLI insurance is tailor-made for businesses that have employees. It can protect against a range of employment-related risks, such as discrimination, wrongful treatment and other claims.
Which businesses in Massachusetts is employment practices liability insurance for?
Any Massachusetts businesses with employees might benefit from employment practices liability insurance. It takes just one employee to make an allegation that could be costly if EPLI isn’t in place.
For this reason, small businesses should consider the insurance as soon as they hire their first employee. In fact, it’s best to get insurance before hiring in case an applicant claims discrimination.
What scenarios are typically covered by employment practices liability insurance?
Employment practices liability insurance might cover a variety of scenarios where employers could have exposure to discrimination claims. Although specifics may vary, these policies could provide protection in situations such as:
- Unpaid interns were asked to do work that should’ve been paid
- Female and male employees have been unequally paid for a prolonged period
- Minority workers are assigned excessive work that’s below their qualifications
- Interviewers ask applicants prohibited questions about immigration or maternity
- Managers forget to inform candidates that background checks will be conducted
- Older workers were forced to stop working without legal grounds
- LGBTQ+ employees are denied promotions because of their sexual orientation
- Employees claim there’s a generally hostile workplace environment
An insurance agent can go over the situations that a particular EPLI policy would likely cover. For covered situations, policies usually pay legal defense fees and any settlement (up to a policy’s limit).
Do EPLI policies cover volunteers?
Many of the same allegations that can be made by employees might also be made by volunteers. Even though they aren’t paid, volunteers could claim they were mistreated because of their gender, race, age, orientation or another illegal reason.
For organizations with lots of volunteers, the potential risk exposure can be quite extensive if there’s no insurance in place. Thankfully, EPLI policies may cover volunteers.
If coverage is specifically needed for volunteers, organizations should work closely with an insurance agent who’s specialized in employment practices liability insurance. This is one protection that requires extensive knowledge of EPLI policies to check.
Are claims of employee discrimination covered under general liability insurance?
While general liability insurance offers a defense against many business-related risks, these are usually common risks and aren’t specific to employment. General liability normally doesn’t cover employment discrimination claims. For such claims, EPLI insurance is typically needed.
Are claims of employee discrimination covered under workers compensation?
Workers compensation broadly offers compensation for workplace injuries and illnesses, and not discrimination claims. Again, EPLI is normally needed for employment discrimination claims.
Do EPLI policies cover claims of third-party discrimination?
Employees and volunteers aren’t the only ones who could allege discrimination. Businesses can occasionally also face discrimination allegations from third parties, like clients or vendors.
Standard EPLI policies don’t always cover third-party discrimination claims. If coverage for these claims is specifically needed, though, a specialized agent can help look for a policy that does include protection against third parties.
Do EPLi policies cover claims of FMLA violations?
Many EPLI policies include coverage for claims that allege a business violated the Family Medical Leave Act (FMLA). For example, a new father who claims they lost their job while on FMLA might be covered.
Coverage for Fair Labor Standards Act (FLSA) and Occupational Safety and Health Act (OSHA) violations are also frequently covered. Coverages can vary, though, so terms should be confirmed by a knowledgeable insurance agent.
Where can businesses find EPLI insurance?
If you’re an employer in Massachusetts, make sure your business is well protected with robust EPLI insurance. Contact us at PIKE Insurance, and we can help you review coverage needs. We’ll make sure you find employment practices liability insurance that’ll give your business robust protection.
