Massachusetts businesses that employ people normally must adhere to a variety of state and federal laws. Should a business violate any laws that it’s required to follow, the affected employees may file a lawsuit or claim. Employment practices liability insurance policies can help protect businesses from suits and claims that are related to covered employment violations.
Employment practices liability policies provide a specialized form of liability coverage. They’re specifically designed to mitigate some of the risks that come with hiring employees.
Most businesses that have employees, regardless of whether they have one or many, can benefit from EPLI coverage. While the risk of a claim might increase with more employees, it takes just one to accuse a business of violating employment laws. Few businesses have the resources to deal with such an accusation and remain unscathed.
Nonprofit organizations that have employees may want an EPLI policy for the same reason for-profit businesses get them. Nonprofits that don’t have employees but use volunteers might also benefit from coverage, for some policies also cover claims filed by volunteer workers.
Businesses that already have employees but don’t have EPLI coverage in place should talk with an experienced insurance agent soon. Every day without a policy may leave a business exposed to risk, and a knowledgeable agent can help businesses quickly find the coverage that’s right for them.
Businesses that are exploring this type of coverage as they get ready to bring on their first employees ought to speak with an agent before the hiring process officially begins. Having a policy prior to placing any job listings might protect businesses from claims filed by prospective employees.
As with any kind of insurance, exactly what claims an employment practices liability policy covers is determined by the policy’s terms and conditions. Some potential claims that might be covered include:
Even if a business follows all current employment laws, it may still be wise to obtain an employment practices liability policy.
For one, the business may not be aware of a new law as soon as it’s passed and violate the new regulation. Staying on top of all current regulations is time-consuming, and sometimes new laws aren’t immediately clear.
Additionally, employees can usually file claims regardless of whether a business is truly at fault. Most policies provide coverage for legal defense costs and will help manage the costs that come with fighting an illegitimate claim.
Employment practice liability policies are frequently complex. Comparing their protections requires an advanced knowledge of the risks that come with employing workers and what coverages are available.
For help thoroughly comparing employment practices liability insurance policies, contact the experienced agents at Paul T. Murphy Insurance. Our independent agents are able to compare policies from different Massachusetts insurers, and they have the expertise needed to help you find the best policy for your business or nonprofit organization.