EPLI Insurance in Massachusetts

What situations does employment practices liability insurance protect against?

Employment practices liability insurance may cover a variety of employment-related allegations. For example, a policy might give protection in situations such as the following:

• Gender Wage Discrepancy: Women are overall paid less than men who have equal positions and qualifications.
• Unpaid Internship: Interns weren’t paid for an internship that, per law, needed to be a paid position.
• Age Discrimination: Older employees are forced out, through firing, laying off, or forced resignation, when there’s no mandatory retirement age for their positions.
• Sexuality Discrimination: LGBTQ+ employees aren’t offered the same promotion and advancement opportunities as other workers who have similar qualifications.
• Racial Discrimination: Minorities are frequently assigned tasks below their positions, which their white coworkers don’t have to do.
• Interview Practices: Hiring managers ask prohibited questions about immigration status or pregnancy, or they fail to tell employees that background checks will be run.
• Hostile Environment: Management practices permit, or even encourage, a generally hostile work environment.

Because protections can vary, it’s important to review a policy’s particular terms with an insurance agent who knows employment practices liability insurance well.

Would EPLI cover discrimination or harassment lawsuits that are filed by volunteers?

Nonprofit organizations that regularly use volunteers could be sued by a volunteer for many of the same reasons that employees might sue. Volunteers might claim they were denied opportunities for illegal reasons like age, race, gender, or sexual orientation. 

Some EPLI policies may cover claims made by volunteers, but not all do. Nonprofit organizations that want coverage for volunteer-filed suits should work with a knowledgeable agent. An agent who specializes in EPLI will likely be able to find suitable coverage.

Would EPLi cover discrimination lawsuits filed by customers or vendors?

Businesses less often face discrimination lawsuits from customers or vendors, but it’s possible for a third-party such as these to sue. Because these lawsuits tend to be less common, coverage for third-party suits is likewise often less common. Businesses that want coverage for customer or vendor lawsuits may be able to find it by working with a knowledgeable agent, though.

Can workers compensation cover employee discrimination lawsuits?

Workers compensation insurance generally won’t cover discrimination lawsuits. Workers comp is, instead, primarily intended for bodily injuries or illnesses that are work-related. EPLI is tailored to address legal risks associated with employment practices.

What is the “retroactive date” detailed in an EPLI policy’s terms?

The retroactive date in an EPLI policy normally specifies the earliest point in time when an incident can occur and still be covered by the policy. This usually means that any discrimination or harassment occurring before the retroactive date wouldn’t be covered. Anything occurring on or after the date might be covered, provided it meets other coverage requirements.