New Jersey has approximately 884,049 small business owners with 1,800,000 employees. When you have staff, you'll want employment practices liability insurance.
Fortunately, an independent insurance agent can help. They have tons of solutions for your business and your employees to have adequate insurance. Connect with a local expert for customized quotes today.
What Is Employment Practices Liability Insurance?
Employment practices liability, also known as EPLI, will provide coverage for lawsuits arising out of employee-related claims. These losses typically involve some type of workplace discrimination or sexual harassment occurrence. EPLI will help pay for your legal fees when a claim arises.
What Does Employment Practices Liability Insurance Cover?
EPLI for your New Jersey business will help cover a variety of losses. It is a necessary business policy when you run an operation that has employees. EPLI provides coverage for legal costs arising from the following claims.
- Sexual harassment
- Wrongful termination
- Breach of an employment contract
- Violation of local and federal employment laws
- Infliction of emotional distress or mental anguish
- Failure to employ or promote
- Wrongful discipline or demotion
- Mismanagement of employee benefits
- Defamation of character
- Privacy violations
What Does Employment Practices Liability Insurance Not Cover?
The more proactive your company is, the less risk you present. With any business insurance, there are exclusions. EPLI is no different. If you violate an industry-standard practice such as OSHA, a loss will not be covered.
If you have a data breach and employee information is stolen, EPLI will not respond. The same exclusion applies to punitive damages or criminal act claims. How your business operates can help avoid some of these losses from ever occurring.
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Employment Practices Liability Insurance Cost
Similar to your other business policies, the cost of coverage is specific. Carriers use personal data and other elements to determine your pricing. In New Jersey, employment practices liability premiums are rated on the following factors.
- Your experience level
- The safety practices you have in place
- If you have a human resources department
- How you deal with hiring
- How you deal with termination
- Prior claims reported
It is good practice to know how insurance companies figure your costs. This way, you can be proactive and improve any items that can benefit your business. Your exact premiums can be obtained through a quote.
Employment Practices Liability Insurance Third-Party Coverage
In New Jersey, there is another EPLI policy that will extend outside of employee claims. This is known as third-party EPLI. Adequate protection for your business is vital to avoid financial ruin. Check out third-party employment practices liability.
- Third-party employment practices liability coverage: This is a separate insuring agreement within employment practices liability insurance (EPLI). It covers liability claims brought by non-employees against employees of your business.
Claims by non-employees will not be insured under your business policies without this coverage. Your general liability insurance excludes coverage for harassment and discrimination. To ensure you are covering all your bases, review your current policies for accuracy.
How to Work with a New Jersey Independent Agent
Employment practices liability insurance in New Jersey can be confusing. If you're not a licensed professional, you may not know where to begin. When you want the right coverage from the get-go, consult with a trusted adviser.
An independent insurance agent can help with policy and premium options. They work with several markets, letting you choose between a variety of coverage. Connect with a local expert on TrustedChoice.com to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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