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Small Business Insurance: Do You Need EPL Coverage In Worcester?

by Lisa Hirbour / April 20, 2016

As a small business owner in Worcester, you try to hire the best employees you can find for the job. However, as soon as you conduct your first interview, you leave yourself open to discrimination lawsuits. If you do not have employment practices liability coverage as part of your small business insurance, you may be facing expensive and damaging litigation.

Small Business Insurance Coverage in Worcester for Employment Practice Liability 

Small Business Insurance Worcester

Putting together an insurance package for your business can be a complicated task. Property insurance, general liability, errors and omissions, workers compensation, and other coverages all need to be considered. One commonly overlooked coverage is employment practices liability. As part of your small business insurance, this liability insurance exists to help protect you in case an employee sues the company for its employment practices. Common lawsuits include:

  • Sexual harassment
  • Discrimination
  • Breach of contract
  • Wrongful termination

The moment you invite a prospective employee into your Worcester office for an interview, you are opening yourself up to a possible lawsuit. Employment practice liability insurance provides coverage for legal fees and settlements awarded, aiming to minimize the effect of this lawsuit on your small business.

What are the costs of adding this coverage to your small business insurance?

The costs of employment practices liability coverage vary based on a number of factors. This includes the number of employees, employee turnover rate, and if you’ve had any lawsuits filed against you in the past. To reduce your risk of being sued, your insurance agent should also provide advice on how to structure your business, and resources on employment law. Establishing a handbook for all employment-related matters can help reduce your overall costs.

When hiring new employees for your Worcester business, you should make sure to adhere to all employment non-discrimination laws. You should also:

  • Detail policies and procedures for discipline and termination, making sure all employees sign and date a form stating they have read and understand the policies.
  • Periodically review and document employee performance, including attendance.
  • Thoroughly screen employees prior to conducting an interview.
  • Document all complaints and disciplinary matters.

Prior to issuing coverage, many carriers will insist on reviewing your employment practices to ensure they adhere to all laws and recommendations. Employment practices liability insurance can be a stand-alone policy, an endorsement onto your existing policy, or written into your Business Owners Policy.

The number of lawsuits against businesses by employees is on the rise. Sexual harassment and discrimination are serious charges that can damage your reputation and incur substantial legal fees to fight. Adding employment practices liability insurance to your Worcester small business insurance policy will help cover these costs while helping you establish practices that will reduce your risk of lawsuits.

Are You Covered?


Tags: Small Business Insurance

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