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What is EPLI insurance?
Texas businesses that have employees are exposed to various employment-related risks. Worker injuries are one of those risks, and there’s workers compensation for that. Discrimination lawsuits are another of the risks. For that, there’s EPLI insurance.
EPLI insurance offers specialized protection against liability risks associated with employing workers. Coverage may extend to applicants, current workers and former workers.
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What businesses in Texas need to carry employment practices liability insurance?
Texas businesses should consider employment practices liability insurance if they have employees. Any employee could allege discrimination and sue.
The importance of employment practices liability spans business sizes, industries and locations. A manufacturing facility, oil refinery, distribution center, medical office, restaurant and museum could all be sued by employees.
Moreover, employment practices liability often covers claims made by job applicants. Businesses, therefore, would be wise to explore this insurance before posting their first job listing. It’s beneficial to have coverage in place before actually hiring an employee.
What sorts of lawsuits does employment practices liability insurance protect against?
Employment practices liability is so named because it’s intended to protect against risks related to how a business employs workers. A policy’s terms, conditions and exclusions determine specifically what the policy extends coverage to. With the right terms, covered claims might include if a(n):
- Unpaid trainee is asked to do work for which they should be compensated
- Woman is paid less than male colleagues with the same credentials and responsibilities
- Supervisor assigns preferable work based on age, race, gender or other prohibited factor
- Interviewer asks illegal immigration questions during applicants’ job interviews
- Older employee is fired because of their age
- Manager neglects to inform employees that background checks will be conducted
Does employment practices liability insurance cover volunteers?
Nonprofit organizations that have many volunteers may want employment practices liability not just for their actual employees, but also for their volunteers. Although it’s less common, volunteers too can allege discrimination and sue. Certain employment practices liability policies may cover volunteer-filed lawsuits.
Because this is a somewhat unique risk, nonprofits should work with an insurance agent who specializes in employment liability. A specialized agent will be able to check whether policies adequately protect against volunteer-filed claims.
Does general liability insurance cover employment discrimination claims?
General liability insurance covers various common risks, but discrimination allegations usually aren’t one of the covered risks. These claims primarily fall within the domain of EPLI.
Does EPLI cover on-the-job injuries?
EPLI usually doesn’t cover job-related injuries and illnesses, instead restricting protection to discrimination claims and similar lawsuits. Workers compensation may be purchased to protect against on-the-job injuries that workers could sustain.
How much are the premiums for EPLI?
EPLI premiums vary based on how many employees a business has, the business's employment practices, any past claims history, and many other factors. An independent insurance agent can help businesses get custom quotes to see how much their coverage would cost.
In many cases, EPLI isn’t purchased alone but rather alongside other coverages. It’s best to work with a knowledgeable independent agent who can compare all of the coverages and premiums associated with these policies, as they’re more complex than standard one-coverage policies.
How can businesses in Texas get EPLI insurance?
If your Texas business employs workers, contact the independent insurance agents at Ramey King Insurance for assistance getting EPLI insurance. We’ll work closely with you to identify EPLI coverage needs, as well as any other commercial insurance coverages your business should have. We’ll then help you choose whichever available policy meets the EPLI and other needs.
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