Employment Practices Liability Insurance in New Hampshire

What is Employment Practices Liability Insurance?

EPLI Insurance

Many businesses can not function without hiring various people of different talents. Hiring enables a business to grow, but it also exposes it to potential risk. Employment practices liability insurance can help protect businesses from many of the risks that come with interviewing and hiring employees.

Employment practice liability coverage is a unique commercial liability coverage. Being a liability coverage, it will most likely help pay for legal costs and settlements arising from covered claims. 

What Sorts of Claims Are Covered by EPLI Policies?

Most EPLI policies protect against an array of potential employment-related issues. Depending on a policy’s terms and conditions, it might cover incidents like the following:

  • A manager asks a prohibited question while interviewing

  • An HR representative runs a background check prior to notifying the person

  • A male employee receives a higher paycheck than a female for no merit-based reason

  • An intern is unpaid for work that they should receive financial compensation for

  • An elderly employee is terminated due to their age

The exact issues that a policy will cover depend on that policy’s terms and conditions. Many policies will cover items that aren’t mentioned here, and an informed insurance agent can explain exactly what a specific EPLI policy will offer protection for.

What New Hampshire Businesses is an EPLI Policy Right For?

Most businesses in New Hampshire that already or soon will have employees should consider getting an employment practices liability policy. Regardless of whether a business has one employee or thousands, the business could be named in an employment-related lawsuit. These can be expensive lawsuits for businesses to defend themselves against and settle.

employment practices liability insurance

Does Following All Employment Laws Protect Businesses Render an EPLI Policy Unnecessary?

While all businesses should follow every applicable employment law and regulation, doing so doesn’t necessarily eliminate the need for an employment practices liability policy. Even if a business follows all regulations, it can still be named in an expensive employment lawsuit. Having insurance in place could greatly defray the associated legal costs.

When is the Right Time to Get an Employment Practices Liability Policy?

In general, businesses should have an employment practices liability policy in place as soon as they begin looking for employees. Coverage should then be maintained for as long as the business continues to employ workers. Purchasing coverage prior to hiring may extend coverage to hiring-related claims, and keeping coverage in place ensures there aren’t any gaps in protection.

Businesses that have employees and don’t already have an employment practices liability policy in place should talk with an experienced insurance agent. A knowledgeable agent will be able to recommend a policy and be able to help with the application process.

Are Workers Compensation and Employment Practices Liability Insurance the Same?

Workers compensation and employment practices liability policies both offer coverage for incidents involving employees, but the protections provided are very different. Workers compensation usually covers job-related injuries and illnesses. Employment practices liability policies typically cover employer-employee issues.

How Can Businesses in New Hampshire Get Employment Practices Liability Insurance?

For help finding employment practices liability insurance that’s suited to your New Hampshire business’ needs, contact HPM Insurance. Our experienced and independent insurance agents have the expertise needed to help you find the right policy. Since we’re an independent agency, our team works with some of the best companies providing EPLI protection.