What Businesses in New Jersey Should Consider EPLI Coverage?
Any business in New Jersey that has employees may want to consider getting an EPLI policy. This includes everything from a restaurant in Camden, NJ to a major corporation in Princeton, NJ. Lots of businesses have at least one employee, and all of them should have protection in case an employee seeks compensation for an infringement.
When Should Businesses Get EPLI Coverage?
Businesses ought to consider getting an EPLI policy before they hire their first employee. Because policies typically cover hiring decisions and practices, as well as post-hiring employment policies and actions, it’s important to have a policy in place before any hiring actions are taken. For some businesses, this is before they even open for business. Other businesses may go years before they hire their first staff member.
Even if businesses are confident that their employment practices meet all legal requirements, they may still want an EPLI policy for two reasons. First, employment laws change periodically, and it’s possible to miss a change and make a mistake.
Second, simply defending a business in a lawsuit is often an expensive proposition. Although a business may win a suit, defending itself in court could cost tens of thousands of dollars. Most EPLI policies cover both legal expenses and settlements associated with any covered employment-related lawsuit, thus helping defray legal costs for covered suits.
How Can Businesses Get EPLI Coverage?
There are several ways a business might obtain EPLI coverage. Sometimes, it’s included within a workers compensation policy. A business may already have coverage through its workers comp policy, or it might be able to purchase coverage as an add-on. Businesses that can’t secure coverage through a workers comp policy might need to get a stand-alone EPLI policy.
An independent insurance agent who specializes in commercial policies and is licensed in New Jersey can help businesses review their workers comp policies for employment practices liability insurance. If a business’ policy doesn’t have coverage, an agent can help the business find it through another workers comp policy or a separate EPLI policy.