- What is it?
It is a type of liability insurance covering wrongful acts arising from employment.
- Who’s it for?
Most businesses in California should carry employment practices liability.
- What is offered?
Policies may cover claims from a variety of inappropriate workplace conduct.
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Employment Practices Liability in California
What is EPLI insurance?
Hiring workers presents several risks, as employees (and potential employees) could sue for a variety of reasons. California businesses can protect themselves from hiring-related risks by purchasing EPLI insurance.
EPLI insurance policies provide specialized protection against the liability risks that hiring and employing people present. Lawsuits by applicants, employees and former employees may all be covered.
What businesses in California need employment practices liability?
California businesses generally should consider an employment practices liability policy if they hire any employees. Even a single worker can present employment-related risks.
The need for employment practices liability broadly holds true across most industries, business sizes and locations. A professional office, a factory, a freight distributor and an art gallery may all benefit from the coverage. Even a nonprofit might want coverage for lawsuits that volunteers could file — employees aren’t the only ones who could allege discrimination.
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Do businesses need employment practices liability for contracted workers?
Businesses that regularly hire independent contractors should speak with an insurance agent who specializes in EPLI policies. Contractors might file discrimination lawsuits much like standard employees could, and insurance might be available for contractor lawsuits too. A knowledgeable insurance agent will know how to check whether particular policies cover both employee and contractor lawsuits.
This is a particular consideration for many businesses in the trucking industry. Trucking companies that contract with owner-operators or independent drivers should evaluate whether these drivers could sue for discrimination. If they could, EPLI coverage may help mitigate the risk.
When should businesses purchase EPLI coverage?
The moment that a business posts a job opening, someone could file suit for employment-related discrimination. A job applicant might claim that their resume wasn’t considered purely on account of a discriminatory reason, for example.
Because of this, businesses ought to evaluate their EPLI coverage needs before posting their first job opening or hiring their first employee. Businesses that already have employees but no coverage probably should promptly evaluate their coverage options.
What kinds of claims does EPLI coverage protect against?
EPLI policies might protect against a variety of risks that employers face. Depending on terms, a policy may cover incidents such as the following:
- Interviewer asks an illegal immigration question when interviewing an applicant
- Manager forgets to inform applicants that background checks will be conducted
- Dispatcher assigns more demanding jobs that pay better to male drivers
- Older drivers and laborers are fired merely on account of their age
- Unpaid trainees perform work for which they should’ve been monetarily compensated
Are employment-related claims covered by general liability insurance?
General liability insurance normally doesn’t provide coverage for discrimination or other employment-related claims. Workers compensation usually covers job-related injuries, but not lawsuits arising from how different classes of workers are treated.
For employment-related risks like those noted, EPLI policies tend to provide the specialized coverage that’s needed.
How much are EPLI policies?
Premiums for EPLI policies vary, because they’re based on numerous different factors. A business’s number of employees, classes of employees and past claims history are only a few of the details that can influence cost.
Businesses can find out how much they’ll have to pay for an EPLI policy by comparing quotes with an independent insurance agent. An independent agent has the knowledge to request customized quotes, and they can compare quotes from multiple insurance companies.
How can California businesses get EPLI insurance?
For help finding EPLI insurance in California, contact the independent agents at Truck Writer Insurance Services. Our agents have worked with many businesses that have employees, and we’re ready to help your business get the employment practices liability that it needs.