From the second you start the pre-hiring process to the moment you conduct the exit interview, your company is vulnerable to a lawsuit, rendering employment practices liability insurance (EPLI) crucial. EPLI protects your business against many of the most common employment-related lawsuits, including discrimination, wrongful termination, and sexual harassment. Coverage typically applies to directors, officers, and employees, and in some cases can extend to third party liabilities.
Why Employment Practices Liability Insurance is a Wise Investment
According to the U.S. Equal Employment Opportunity Commission, there are about 100,000 employment practices liability claims filed each year, and studies have shown that three out of five employers will be sued by a prospective, current, or former employee while they are in business. Considering that the average cost of an employment lawsuit exceeds $270,000, not many businesses, especially small businesses, could survive such a significant financial hit. As a result, the potential return of EPLI far outweighs its cost.
EPLI Coverage Options
A standard employment practices liability insurance policy typically protects against wrongful employment practices such as:
- Actual or alleged wrongful dismissal, discharge or termination
- Employment-related misrepresentation
- Employment-related libel, slander, humiliation, defamation, or invasion of privacy
- Wrongful failure to employ or promote
- Wrongful deprivation of a career opportunity, demotion, or negligent evaluation
- Wrongful discipline
- Punitive damages
- Vicarious liability for intentional acts
- Coercion or humiliation in relation to race, gender, age, marital status, pregnancy, physical and/or mental impairments, sexual orientation, and any other protected class established by federal, state and local statutes.
In addition, many policies offer add-ons such as Wage and Hour Coverage for claims alleging these types of violations, third party liability coverage for qualifying risks, and the inclusion of volunteer workers as additional insureds. It’s best to work with an independent insurance agent, who will take the time to learn about your company’s unique exposures and custom design an EPLI policy that provides full protection.
If you’re looking for employment practices liability insurance in New Hampshire, rely on the agents at Eaton & Berube, who have been protecting New Hampshire businesses of all types and sizes for more than 70 years. In addition to Nashua where our office is located, we are pleased to provide EPLI in Hudson, Hollis, Brookline, Litchfield, Amherst, Merrimack, Bedford, Milford, Manchester, Concord, Goffstown, Derry, Salem, Londonderry, Windham, Wilton, Mont Vernon, and all of New Hampshire.
To get a free New Hampshire employment practices liability insurance quote, please call us today at 603-882-2766 or submit our online quote request form.