EPLI Insurance in Connecticut

What is EPLI insurance?

Should employees feel they were discriminated against or otherwise maltreated, they may sue their employer. Such lawsuits can be expensive even if an employer is exonerated, and that’s not even considering any settlement that an employer might have to pay. To help protect against this risk, employers in Connecticut can get EPLI insurance.

EPLI insurance may protect employers against a range of discrimination or harassment lawsuits that employees could file. Policies typically help cover court costs, attorney fees, and settlements.

When do Connecticut businesses need to get employment practices liability insurance?

Employment practices liability insurance is generally recommended anytime a Connecticut business has an employee. It takes just one employee to make allegations that result in an expensive lawsuit.

Some employers choose to get EPLI coverage even before officially hiring their first employee. Policies could also protect against allegations that applicants make if they aren’t hired.

Free Quotes!

What scenarios are covered by employment practices liability insurance policies?

Depending on the specific terms of a policy, employment practices liability insurance covers a wide range of allegations that employees might make. These often include:

• Unpaid internships that should’ve been paid
• Gender pay disparities
• Age-related firings and forced resignations
• Denied promotions because of sexual orientation
• Menial duties because of minority race
• Illegal interview questions about immigration or pregnancy
• Background checks without notifying job applicants
• Hostile work environment allegations

An insurance agent who specializes in employment practices liability insurance can help businesses review a specific policy’s terms, and consider how the policy may extend protection in different situations that the business could face.

Would EPLI cover discrimination allegations made by a nonprofit organization’s volunteers?

It’s possible that nonprofit organizations face discrimination claims from volunteers. Coverage for volunteer accusations isn’t necessarily a standard feature of all EPLI policies, but some policies might offer protection in this situation.

Nonprofits that want protection against volunteer lawsuits should work with an insurance agent who knows EPLI well. A knowledgeable agent will be able to check which policies could offer coverage for volunteer allegations.

Would EPLI cover discrimination allegations made by third parties?

While instances tend to be uncommon, third parties could allege discrimination and file a costly lawsuit. For instance, a customer or vendor could file a lawsuit over racial, sexual orientation, or some other discrimination.

Protection against third-party claims is far from standard in EPLI policies, but some policies might offer coverage. An experienced agent can check whether this is an option within a policy.

Is employment discrimination covered by workers compensation?

Workers compensation insurance typically covers physical injuries or illnesses that occur in the workplace. It generally doesn’t cover employment discrimination issues, which EPLI is usually needed for.

What’s a retroactive date within an EPLI policy?

EPLI policies may have a “retroactive date” included within their terms. This is normally the earliest date on which an incident could have occurred and still be covered. The date can be before a policy was purchased.

How much does EPLI cost?

Costs for EPLI policies can vary substantially. A business’s industry, size, claims history, number of employees, and employment practice are some examples of what commonly impacts cost.

To get an accurate quote that details coverages and cost, businesses can speak with an independent insurance agent. Independent agents are able to request quotes from several different insurance companies.