Around 43,000 small businesses in Mississippi employ a combined total of more than 430,000 people. Sometimes, employees sue. If you are among the many employers in this state, you can protect your business from these potential lawsuits by carrying employment practices liability insurance.
Local independent insurance agents can help you find the best and most affordable policy to cover your Mississippi business. Find an insurance agent near you to start comparing customized quotes for employment practices liability insurance.
What Is Employment Practices Liability Insurance?
Employment practices liability insurance (EPLI) is a business liability insurance product that is designed to cover employers against lawsuits related to accusations of illegal employment practices, whether or not the accusations have merit.
Who in Mississippi Can Benefit from Employment Practices Liability Insurance?
Any business that has employees can benefit from the protections offered by employment practices liability insurance.
Although the Insurance Information Institute (III) reports that the majority of employment practices lawsuits filed are against large corporations, they warn that no company that has employees, regardless of size, is immune.
You may believe that your company treats its employees well and that you therefore do not have a need for this insurance. However, how you see things does not always match how your employees perceive them.
Even if the charges against your business hold no merit, you can spend a lot on legal defense if you do not have insurance.
How Much Does Employment Practices Liability Insurance Cost in Mississippi?
Rates for EPLI coverage can vary from one employer to the next. Factors that can influence how much a policy will cost for your business include the following.
- The number of employees you have
- The industry in which your company operates
- Your company’s rate of employee turnover
- What efforts you or your human resources department have made to prevent potential employment practices lawsuits
- The amount of coverage want to purchase
The only way to find out how much a policy will cost for your business is to request a few customized quotes. Every insurance company has its own way of calculating rates, so comparison shopping can save your business a lot of money.
Business Liability Insurance
What Does Employment Practices Liability Insurance Cover?
EPLI is designed to cover court costs, legal defense fees, settlements, judgements, and other damages if your company is accused of engaging in illegal employment practices.
Here are some of the more common accusations this insurance covers against.
- Wrongful termination
- Breach of contract
- Failure to promote
- Intentional infliction of emotional distress
- Mismanagement of employee benefits
Most incidents that can incite an employment practices lawsuit against your businesses by current, former, or even prospective employees are covered.
What Does Employment Practices Liability Insurance Not Cover?
As with any insurance policy, EPLI does have some limitations. Coverage exclusions may vary among different insurance companies, but for the most part, you can expect that your policy will not cover the following issues.
- Punitive damages, criminal fines, or civil fines if your company is found guilty of engaging in illegal acts
- Liabilities that are covered by other policies like workers’ compensation insurance or cyber liability insurance
- Incidents involving violations of the following
- The Occupational Safety and Health Act (OSHA)
- The Employee Retirement Income Security Act (ERISA)
- The National Labor Relations Act (NLRA)
- The Worker Adjustment and Retraining Notification Act (WARNA)
Be sure to review the coverage exclusions of any policies you are considering before you make a purchase.
How Can Mississippi Business Owners Find the Best EPLI Coverage?
The easiest way to find a great EPLI policy at a competitive price is by working with an independent insurance agent. These agents do not work for a specific insurance company, so they are free to request policy information and customized quotes from a variety of the area’s top-rated providers.
There are more than 200 independent agents in Mississippi who are ready to help. Arrange an obligation-free consultation with an insurance agent near you to get started.