Employment Practices Liability Insurance (EPLI)

As a business owner in Massachusetts, have you considered the impact an employee lawsuit could have on your business? Many small to mid-sized businesses mistakenly assume an employment related claim could never happen to them.  

Employee lawsuits happen within every organization, large and small, regardless of industry and have significantly increased in recent years.  According to Trusted Choice, over the past twenty years, employee lawsuits have risen by 400%, with wrongful termination suits jumping up more than 260%.

The impact of an employee lawsuit can be significant.  Not only can employee lawsuits be financially devastating, but they can also disrupt business operations, affect company morale, cause reputational damage, may cause the value of the business to depreciate, or worse force closure of the business. 

There are many different types of Employee Lawsuits. Discrimination is the leading cause of employee lawsuits, but employees can also sue employers for wrongful termination, workplace harassment, workplace injuries, wage violations and retaliation.  In Massachusetts employers are prohibited from withholding a job offer, denying a promotion, certain compensation and benefits or firing an employee based on their race, color, religious creed, national origin, ancestry, sex (includes pregnancy), gender identity, marital status, age, criminal record, mental or physical disability, sexual orientation, or military status.  

McSweeney & Ricci recommends all businesses purchase Employment Practices Liability (EPLI) coverage. Coverage can be added as an endorsement on a standard business owners policy, or written on a stand-alone basis. EPLI covers businesses legal defense costs in the event of an employee lawsuit. 

For more information on Employment Practices Liability Insurance (EPLI) in Massachusetts for your business, contact us at (844) 501-1359. 

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