What Types of Workplace Claims Are Covered Under EPLI?

When it comes to running a business in Massachusetts, protecting your company and your employees is about more than just having general liability or property insurance. One crucial area that many business owners overlook is Employment Practices Liability Insurance (EPLI). As workplace regulations evolve and employee expectations rise, even well-intentioned employers can find themselves facing costly claims. At Feingold Companies, we understand the unique employment challenges that Massachusetts businesses encounter, and we help our clients find EPLI insurance solutions designed to help reduce risk exposure.

Below, we’ll answer some common questions about the types of workplace claims that may be covered under an EPLI policy and why it’s a key component of a comprehensive business insurance plan.

What Is Employment Practices Liability Insurance (EPLI)?

Employment Practices Liability Insurance, or EPLI, is a specialized form of business insurance that may help protect employers against claims made by employees, former employees, or even job applicants alleging that their rights were violated during the employment process. These types of claims can arise from a variety of workplace situations—hiring, firing, promotions, and general day-to-day management decisions.

While general liability insurance typically covers bodily injury or property damage, EPLI focuses on employment-related issues. It’s designed to help businesses manage the financial impact of certain types of employee lawsuits, which can be expensive and time-consuming, even if the employer ultimately prevails.

What Are Some Common Claims That May Fall Under EPLI Insurance?

EPLI insurance may address a wide range of employment-related allegations. Some of the most common include:

• Wrongful Termination – Claims that an employee was fired without proper cause or in violation of employment laws.
• Discrimination – Allegations that an employer made decisions based on protected characteristics such as age, race, gender, religion, disability, or sexual orientation.
• Harassment – Claims involving inappropriate behavior in the workplace, which could include sexual harassment or hostile work environment complaints.
• Retaliation – Accusations that an employer punished an employee for reporting misconduct, safety issues, or participating in an investigation.
• Failure to Promote or Hire – Claims that an individual was unfairly passed over for advancement or denied employment based on unlawful factors.

Each EPLI policy may vary in what it includes or excludes, so it’s important for Massachusetts business owners to review their policy terms closely with a trusted insurance advisor.

Are Wage and Hour Claims Covered Under EPLI Insurance?

Wage and hour disputes have become increasingly common in Massachusetts, especially for industries that rely on hourly or contract workers. These disputes can include allegations of unpaid overtime, misclassification of employees, or missed meal breaks.

Standard EPLI policies often exclude wage and hour claims, but some insurers may offer limited coverage through an endorsement or add-on. Even when direct coverage is limited, EPLI can still play a valuable role by helping cover defense costs related to other aspects of employment-related lawsuits.

Working with an experienced insurance agency like Feingold Companies can help you understand what your policy may include and whether you should consider additional coverage options to better protect your business.

Does EPLI Insurance Cover Claims From Third Parties?

While many employers think of EPLI as protection against claims from employees, some policies may extend to cover third-party claims. These involve allegations made by non-employees, such as customers, vendors, or clients, who claim they were discriminated against or harassed by someone within the company.

For Massachusetts businesses in customer-facing industries—such as retail, hospitality, or healthcare—third-party coverage can be an important consideration. It helps address risks that extend beyond the internal workforce, especially in workplaces where employees interact directly with the public.

Can Small Businesses in Massachusetts Benefit From EPLI Coverage?

EPLI is not just for large corporations. Small and mid-sized businesses across Massachusetts are just as vulnerable to employment-related claims, and they may be at greater financial risk when facing legal costs. A single claim, even if unfounded, can lead to significant attorney fees, settlements, or court expenses.

Smaller employers may not have in-house human resources departments or legal teams, which can make it harder to navigate complex employment laws. EPLI coverage can help fill that gap by providing access to legal defense resources and risk management tools.

At Feingold Companies, we work with Massachusetts businesses of all sizes to help tailor EPLI policies that fit their specific workforce and risk profile.

How Can Businesses Help Reduce the Likelihood of EPLI Claims?

While EPLI insurance is an important safeguard, prevention is always the first line of defense. Massachusetts employers can take proactive steps to minimize potential exposure, such as:

• Developing clear, up-to-date employee handbooks and policies.
• Providing regular training on anti-discrimination, harassment prevention, and workplace conduct.
• Maintaining consistent documentation of employment decisions.
• Creating fair and transparent hiring and promotion processes.
• Conducting regular reviews of HR policies to ensure compliance with state and federal laws.

By combining sound employment practices with EPLI coverage, businesses can create a more secure and compliant workplace environment.

Why Work With Feingold Companies for EPLI Insurance in Massachusetts?

With decades of experience serving Massachusetts businesses, Feingold Companies understands the evolving challenges employers face in today’s regulatory environment. Our team takes the time to understand your company’s structure, size, and employment practices so we can recommend tailored EPLI insurance solutions that align with your operational needs.

We also stay up to date on Massachusetts employment laws and insurance market trends, which allows us to provide insight and guidance beyond just the policy itself. Whether you operate a small professional office or a multi-location business, Feingold Companies can help you explore EPLI options that complement your broader risk management strategy.

Is EPLI the Right Fit for Your Massachusetts Business?

Every organization has different exposures depending on its size, industry, and workforce dynamics. If you have employees—or even if you work with contractors or interns—employment-related claims could impact your business. EPLI coverage can be an important component of a well-rounded business insurance portfolio, helping to reduce the potential financial strain of unexpected workplace disputes.

To learn more about Employment Practices Liability Insurance or to request a personalized EPLI insurance quote, contact Feingold Companies today. Our knowledgeable team is here to help Massachusetts business owners better understand their coverage options and take the next step toward a more protected future.