Employment Practices Liability in Massachusetts

What Massachusetts Businesses Need an EPLI Policy?

Most businesses in Massachusetts that have or will soon hire employees should consider getting an EPLI policy. Employers who have just a few employees and those that have thousands can both be sued for discriminatory and other illegal employment practices, and a business doesn’t have to be found guilty before it faces substantial legal fees.

Because policies sometimes cover incidents that occur during the hiring process, businesses should consider purchasing a policy before they post any open job positions. Any business that’s unsure when the right time to get a policy is can talk with an agent who specializes in this type of coverage about the business’ specific situation. A knowledgeable agent will have sound advice on what to look for in a policy and when to purchase one.

How is Employment Practices Liability Different from Workers Compensation?

Both employment practices liability insurance and workers compensation insurance offer protection in situations where employees are negatively impacted. The types of situations that each insurance covers are different, though:

• Employment practices liability usually covers employment-related lawsuits

• Workers compensation usually covers job-related illnesses and injuries

In most cases, businesses that have employees should carry both types of insurance (and may be legally required to carry workers compensation).

Does General Liability Insurance Cover Employee-Filed Lawsuits?

General liability insurance typically covers situations involving third parties. For example, a policy might cover third-party injuries sustained on company property, damage caused to a third party’s property, and libel, slander and false advertising lawsuits filed by third parties.

Employees normally aren’t considered third parties and therefore, lawsuits filed by employees usually don’t fall under the domain of general liability. Instead, they might be covered by employment practices liability, workers compensation or another coverage depending on the nature of the incident.

How Much Do Employment Practices Liability Policies Cost?

The price of employment practices liability insurance often varies and is based on several factors. A few items that insurance companies might consider when setting rates are:

• How many employees an employer has

• How much employees are paid

• What industry a business operates in

• Whether a business has filed claims in the past

Businesses can find out how much a policy would cost them by contacting an independent insurance agent, for independent agents are able to compare policies and rates from different insurance companies.

How Can Massachusetts Businesses Get Employment Practices Liability Insurance?

For help finding employment practices liability insurance, contact Garrity Insurance. Our independent agents have helped many businesses in Massachusetts get a policy that meets their needs, and we’d be happy to assist your business.