What types of lawsuits do employment practices liability insurance policies cover?
Employment practices liability insurance policies typically cover legal actions that stem from how employers treat their employees. While coverages can differ among policies, they might be applicable to lawsuits resulting from situations such as the following:
- An unpaid intern is assigned duties that warrant compensation.
- Female employees within a company systematically earn less than male colleagues.
- Supervisors unjustly allocate menial tasks to minority staff members.
- Interviewers ask prohibited questions regarding immigration or pregnancy status.
- Hiring managers neglect to notify job applicants about required background checks.
- Senior employees are inappropriately forced to leave due to their age.
- Employees of certain sexual orientations are unfairly denied promotion opportunities.
- Workers face harassment in a hostile work environment.
An insurance agent specializing in EPLI can review a specific policy's coverage details, and explain what sorts of incidents likely would and wouldn’t be covered.
Do employment practices liability insurance policies extend coverage to volunteers?
The terms of some employment practices liability policies allow them to cover volunteers. Volunteers can allege many of the same discrimination claims as employees, and nonprofits can likewise be held accountable.
For this reason, most nonprofits in Massachusetts should contemplate acquiring an EPLI policy. They should work with an EPLI agent who’s familiar with the nuances of protecting against volunteer-filed allegations.
Are employee discrimination claims covered by general liability insurance?
Although general liability insurance defends against risks common to many businesses, employee discrimination claims typically aren't among those risks. An EPLI policy is usually necessary to protect against discrimination claims and lawsuits.
Do employment practices liability policies extend coverage to other third-party claims?
Occasionally a business may be accused of discrimination by a third party, such as a client, vendor or other external party. These claims too can be expensive to defend against.
EPLI policies typically don’t provide coverage for third-party claims as a standard or even common feature. If such protection is needed, though, a specialized insurance agent can check whether any available policies offer the protection as an optional feature.
Are employee discrimination claims covered by workers compensation?
Workers compensation usually protects against job-related injuries and illnesses, not employee discrimination claims. An EPLI policy is typically needed to safeguard against discrimination claims.
