Yes, small businesses are just as vulnerable to employment-related lawsuits as larger ones. In fact, smaller businesses may be at a greater risk. After all, they may not have the same resources or legal expertise to defend against such claims. EPLI can provide financial protection and peace of mind for small business owners.
EPLI Coverage in New York
If your business is vulnerable to the risks of employment-related claims, EPLI coverage from HCP Insurance in New York can help.
NY employment practices liability insurance
Imagine you’re a business owner, confidently sailing your company into the waters of success.
Suddenly, a storm hits, and a rogue wave crashes into your vessel, causing damage you never saw coming. In the world of business, that storm could be a lawsuit.
And employment practices liability insurance (EPLI) is the lifeboat you need to stay afloat.
What is EPLI?
Think of it as a safety net for your business. It offers financial protection and confidence in the event of employment-related lawsuits.
With the right EPLI policy, business owners can navigate the stormy waters of employment litigation. They’ll know they have the protection they need to weather any legal challenges.
Typical New York small business risks covered by EPLI
It’s easy to see why this coverage is so crucial when it’s clear the protection it offers. Here are some risks EPLI coverage can protect your New York small business against.
If an employee or job applicant is subjected to unwelcome behavior, harassment claims can arise. This can include sexual advances or offensive jokes in the workplace. EPLI insurance can include defense costs, settlements, and judgments related to harassment claims.
Employees who report illegal activities and suspect retaliation can make these claims. EPLI insurance covers defense costs, settlements, and judgments for retaliation claims.
Wrongful termination claims
Let’s say an employer fires an employee for illegal reasons. These could include discrimination, retaliation, or breach of contract. Then, the employee can file for wrongful termination. EPLI insurance would cover costs associated with termination claims, including defense costs, settlements, and judgments.
Employees or job applicants can make discrimination claims if they feel mistreated based on race, gender, age, religion, and disability. EPLI can cover defense costs, settlements, and judgments associated with these claims.
Wage and hour claims
Employees may file claims related to unpaid wages, unpaid overtime, or other violations of wage and hour laws. EPLI insurance can cover defense costs, settlements, and judgments in such claims, helping small businesses address these legal and financial challenges.
Choose HCP Insurance for EPLI coverage in New York
At HCP Insurance, we are committed to helping businesses in New York navigate the complexities of EPLI coverage and provide them with the tailored protection they need to safeguard their operations, finances, and reputation.
Who needs EPLI coverage?
Employment-related lawsuits and claims can arise in any industry and can have significant financial and reputational consequences. EPLI coverage is particularly important for businesses in certain industries that may face higher risks and frequency of employment-related claims.
Some industries in New York that may benefit from EPLI coverage include:
- Financial services
- Professional services
Examples of claims EPLI can cover
Claims related to the termination of an employee for illegal or unethical reasons. This can include discrimination or retaliation.
Breach of contract
These claims relate to a breach of an employment contract. Common examples include failure to provide promised compensation or benefits.
Businesses are constantly entering into new contracts. This includes with clients, suppliers, other companies, or even contractors. In turn, it isn’t uncommon for them to rely on EPLI for any breaches of contract. EPLI helps protect them from financial losses arising out of this.
Invasion of privacy
These are claims relating to invasions of an employee’s privacy. They can include unauthorized monitoring of emails or other personal communication. One recent example was when the fingerprints of NYC teachers were reportedly sent to the FBI, prompting job losses.
EPLI could help ensure the board’s reputation is not damaged. It can also help ensure appropriate compensation against any claims arising from invasion of privacy.
Frequently asked questions about EPLI
Here are some of the answers you’re looking for to questions about EPLI.
The cost of EPLI can vary depending on factors such as the size of the business, the industry, the number of employees, and the coverage level. In general, EPLI tends to be relatively affordable. Premiums tend to range from a few hundred to a few thousand dollars per year.
No, EPLI is not a legal requirement in New York (or any other state). Yet, some industries or contracts may need businesses to carry EPLI as a condition of doing business. Additionally, some companies carry EPLI as a proactive measure. This gives them peace of mind they have protection against potential legal claims.
Yes, we can customize your EPLI coverage to fit a particular business’s specific needs and risks. Business owners can customize their policy with their provider to cover the risks most relevant to their business.
EPLI typically covers claims related to employment practices, such as wrongful termination, discrimination, harassment, retaliation, and wage and hour disputes. It can provide coverage for legal defense costs, settlements, and judgments associated with these claims.
New York EPLI policies
Don’t leave your business vulnerable to employment-related liability claims. HCP Insurance is eager to find the best EPLI policy for your business — contact us today!