EPLI Insurance in Pennsylvania

Also providing EPLI insurance to residents in Maryland, North Carolina, New Jersey, and Virginia.

Anthony Acri Insurance

What is EPLI insurance?

EPLI insurance, or Employment Practices Liability Insurance, is a specialized commercial insurance policy designed to protect businesses from claims made by employees regarding employment-related issues. These issues may include wrongful termination, discrimination, harassment, and retaliation claims. As employment regulations continue to evolve, businesses in Pennsylvania and across the country are increasingly exposed to potential claims, which may be costly and time-consuming to handle.

What does EPLI insurance protect against?

EPLI insurance in Pennsylvania provides coverage for a wide range of employment-related claims. The most common types of claims covered include:

1. Wrongful Termination: EPLI insurance may cover claims where an employee alleges they were terminated unfairly or without proper cause.
2. Discrimination: If an employee claims they were discriminated against based on factors such as race, gender, age, or disability, EPLI insurance may cover related legal expenses.
3. Harassment: This includes claims of sexual harassment or hostile work environments, where employees allege inappropriate conduct that affected their well-being or ability to work.
4. Retaliation: If an employee claims they faced retaliation after reporting a workplace issue, EPLI insurance may cover the associated costs.
5. Breach of Employment Contract: EPLI insurance may also cover cases where an employee believes the terms of their employment contract were violated.

Are independent contractors in Pennsylvania covered under EPLI insurance?

Generally, EPLI insurance is designed to cover claims made by employees rather than independent contractors. However, in certain cases, independent contractors may file claims against a business, alleging harassment, discrimination, or other employment-related issues. Coverage for such claims depends on the specific EPLI policy, as not all policies extend protection to contractors. If your business regularly works with independent contractors, it’s wise to consult with your insurance provider to determine whether your EPLI policy includes this coverage or if additional options are available to safeguard against these risks.

Are part-time or temporary employees covered under EPLI insurance?

Yes, most EPLI insurance policies extend coverage to part-time and temporary employees, as they are still considered part of the workforce. Claims made by part-time or temporary employees for issues like discrimination, harassment, or wrongful termination are typically covered under EPLI policies. However, it’s important to confirm this with your insurance provider, as coverage specifics may vary. For Pennsylvania businesses that frequently hire part-time or temporary workers, ensuring coverage for these employees is essential in protecting against employment-related claims.

Does EPLI insurance cover claims from third-party vendors or clients?

Standard EPLI insurance policies primarily cover claims made by employees. However, some policies offer optional extensions for third-party coverage, which may include claims from vendors, clients, or other third parties who allege harassment, discrimination, or similar conduct by employees. This type of coverage may be valuable for businesses with frequent interactions with external parties, as it provides broader protection. To determine if third-party coverage is included, Pennsylvania businesses should review their EPLI policy carefully or discuss this option with their insurance provider.

Does EPLI insurance cover claims that result from social media activities?

Yes, EPLI insurance may cover claims arising from social media activities, but this depends on the specifics of the policy. With the growing influence of social media, claims related to inappropriate comments, harassment, or defamation involving employees’ online actions have become more common. Some EPLI policies cover such claims, particularly if the activity is related to workplace behavior or employment practices. Given the impact of social media, Pennsylvania businesses may benefit from confirming with their provider that their EPLI insurance includes coverage for claims involving social media conduct.

How much does EPLI insurance cost in Pennsylvania?

The cost of EPLI insurance depends on several factors, including:

• Business Size: The number of employees significantly impacts costs. Larger businesses typically face higher premiums due to greater risk exposure.
• Industry Risk: Industries with higher claims frequency, such as hospitality, healthcare, or retail, often see increased rates.
• Claims History: Businesses with a history of employment-related claims, such as discrimination or harassment, may face higher premiums.
• Coverage Limits: The higher the policy limits, the more expensive the premiums.
• Deductibles: Choosing a higher deductible can lower premium costs but increases out-of-pocket expenses during a claim.
• Workforce Policies: Strong HR practices, including clear anti-discrimination and anti-harassment policies, can reduce premiums by mitigating risks.
• Location: Local laws and regulations around employment practices can influence costs, with stricter jurisdictions often resulting in higher premiums.
• Turnover Rate: High employee turnover can signal increased risk, potentially driving up insurance costs.

How can Pennsylvania businesses get EPLI insurance? 

Reach out to the independent agents at Anthony Acri Insurance Agency for a fast quote on EPLI insurance in Pennsylvania and receive expert guidance tailored to your business needs. Our team understands the unique challenges Pennsylvania businesses face and is dedicated to helping you secure reliable coverage to protect against employment-related claims. Don’t leave your business exposed—contact Anthony Acri Insurance Agency today to explore EPLI coverage and gain the peace of mind that comes from knowing your workplace is protected.