What is it?
Who needs it?
What is EPLI Insurance?
Businesses that employ workers are often inherently exposed to various employment-related risks, for almost anyone can sue their employer if they choose to do so. EPLI insurance might help protect California businesses from a range of potential employment lawsuits.
EPLI insurance is specialized commercial liability insurance for businesses that have employees. Like other liability insurances, the coverage normally assists with attorney fees, court fees and settlements arising from covered claims. Most claims are paid when they’re filed, as opposed to when a lawsuit is ultimately dismissed or settled.
What California businesses should carry Employment Practices Liability Insurance?
Most California businesses that employ workers are exposed to potential employment lawsuits, and therefore should consider employment practices liability insurance. Employers can be sued regardless of their size, industry, number of employees or many other factors.
Moreover, unsuccessful lawsuits can still cause significant financial strain on a business. Simply defending a business in court can be financially devastating, which is why making sure EPLI begins offering payments when a claim gets filed is so important.
When should businesses look for Employment Practices Liability Insurance?
Businesses ideally should consider employment practices liability insurance before posting their first job opening, for even job applicants might file discrimination lawsuits. Many businesses don’t consider EPLI before posting their first job opening, in which case coverage should probably be purchased as soon as possible.
When purchasing EPLI, businesses should work closely with an insurance broker who specializes in this coverage. A specialized broker will be able to find coverage that’s tailored for a business’s employment situation.
What sorts of incidents does Employment Practices Liability Insurance cover?
Exactly what incidents will be covered by an employment practices liability policy are determined by the policies’ terms, conditions and exclusions. Depending upon those, a policy might cover claims like the following:
- Manager fails to tell applicants that background checks will be conducted
- Interviewer asks legally prohibited question about pregnancy during an interview
- Male employees have historically been paid more than their female counterparts
- Interns complete unpaid internships for which they should have received compensation
- Older employees don’t face mandatory retirement, but are let go because of their age
Does General Liability Insurance cover employment-related lawsuits?
General liability insurance usually excludes employment lawsuits from their protections. Despite employment risks being common perils that many businesses face, a more specialized EPLI policy is normally needed to protect against the risks.
Do EPLI policies extend coverage to work-related injuries?
EPLI policies protect against a range of liability risks that stem from having employees, but work-related injuries normally aren’t one of the risks that these policies cover. Instead, workers compensation is usually needed for protection against workplace injuries.
How can California businesses get EPLI Insurance?
For assistance with EPLI insurance, contact the independent insurance brokers at Heffernan Walton Insurance. Our brokers know employment practices liability policies well, and they’ll make sure you get a policy that’ll protect your California business well. We can recommend the best available policies since we’re an independent insurance agency