EPLI Insurance in Maine
Allen/Freeman/McDonnell Agency
EPLI Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
EPLI insurance provides tailored coverage to help employers shield themselves against covered discrimination claims and other employment risks. Policies might pay legal fees and settlements.
In fact, businesses are often wise to have EPLI coverage before hiring their first employee. Many policies offer coverage if job applicants claim they aren’t hired because of a discriminatory decision.
EPLI policies generally offer wide-ranging protection against discrimination claims and certain other accusations employees might make. Depending on the specific terms of a policy
What is EPLI Insurance?
As soon as a Maine business brings its first employee on board, the business becomes an employer and susceptible to employment-related risks. Some of the most serious risks to protect against are potential accusations of discrimination. The resulting legal costs can be expensive if an employee ever alleges that they were discriminated against, which is why there’s EPLI insurance.
EPLI insurance provides tailored coverage to help employers shield themselves against covered discrimination claims and other employment risks. Policies might pay legal fees and settlements.
Which businesses in Maine is employment practices liability insurance for?
Nearly all Maine employers should have employment practices liability insurance. A single discrimination allegation could be financially ruinous, and other prohibited actions could be costly too.
In fact, businesses are often wise to have EPLI coverage before hiring their first employee. Many policies offer coverage if job applicants claim they aren’t hired because of a discriminatory decision.
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What allegations does EPLI typically cover?
EPLI policies generally offer wide-ranging protection against discrimination claims and certain other accusations employees might make. Depending on the specific terms of a policy, it could cover the following:
- Unpaid interns allege that they should have been compensated for their work
- Female employees discover they generally earn less than male employees
- Minority employees are assigned tasks below their qualifications
- Job applicants are asked about pregnancy or immigration status
- Interviewers forget to note that background or credit checks will be run
- LGBTQ+ employees see fewer advancement opportunities than others
- Older employees are forced out due to their age
- Employees claim a work environment is generally hostile
Do EPLI policies cover allegations from volunteers?
Nonprofits that have large numbers of volunteers face risks similar to those of employers. Although it might occur less often, volunteers still could claim discrimination in many situations. For example, they might alledge that they were denied certain duties due to gender, race, sexual orientation, age or other prohibited reasons.
Some EPLI policies may offer coverage for allegations made by volunteers, but not all do. Nonprofits interested in this coverage should consult with an insurance agent specializing in employment practices liability, to explore available policy options.
Do EPLI policies extend coverage to discrimination claims from customers or clients?
Though rare, discrimination claims may also be filed by individuals other than employees and volunteers. Customers, clients and vendors could claim they were unfairly discriminated against, and these allegations can be expensive too.
Is employment discrimination covered by general liability insurance?
General liability insurance primarily covers standard business risks, like defamation and “slip and fall” accidents. The coverage usually doesn’t provide protection for discrimination or other employment-related claims.
For these risks, employment practices liability risk is normally needed. It can often be combined with general liability in a commercial package policy.
Do EPLI policies cover workplace injuries?
Although workplace injuries are another risk that employers generally should insure against, injuries typically fall under workers compensation. Employment practices liability insurance normally doesn’t cover physical injuries or illnesses.
How much do employers pay for employment practices liability insurance?
The premiums charged for employment practices liability insurance depend upon a business’s employment situation. Number of employees, hiring and termination practices, employee turnover rate, and any past EPLI claims can affect rates. So too can a business’s revenues, industry and other details.
An independent insurance agent can help employers check how much different insurance companies will charge for premiums.
How can Maine businesses get EPLI insurance?
For help finding EPLI insurance in Maine, reach out to the independent insurance agents at Allen Freeman McDonnell Agency. Our independent insurance agents will help you find a robust and affordable policy.
