Get New York employment practices liability insurance quotes, cost & coverage fast. EPLI covers NY businesses against employee's claims that their legal rights as have been violated including; sexual harassment, discrimination, wrongful termination and more.
NY Employment Practices Liability Insurance
New York employment practices liability insurance (EPL insurance or EPLI) offers coverage for employers against any claims that are made against them by employees.
Typically, large companies have a significant amount of New York employment practices liability insurance coverage. It ensures that they are prepared for any costs that may arise should an employee files a claim.
Given the fact that larger companies usually have a large employee base, having this coverage makes sense. However, it's not just big corporations that should have this type of insurance; smaller NY businesses and startups should have it, too.
In fact, it might be even more beneficial for small businesses and startups to have employment practices insurance coverage, as they tend to be more vulnerable to employee-filed claims. Why? - Because often, these types of organizations don't have a legal department or an employee handbook that details their procedures and policies regarding hiring, terminating, and managing their employees.
Who's At Risk For A Employment Practice Liability Claim?
Any business owner - from a large NY corporation to a small brick and mortar operation - is at risk of having a claim filed against them by an employee the minute they begin interviewing possible employees. For instance, should the company decide that they don't want to hire a candidate, he or she could allege discrimination and file a claim against the business.
If the business does end up hiring the person that was interviewed and ends up firing him or her later on as a result of poor attendance, for example, that person could claim he or she was wrongfully terminated.
Whether the allegations are founded or not, whenever an employee files a claim against an employer, the company could face serious financial upheaval. This is where New York employment practices liability insurance can help.
For example, a judge could find the company guilty and a settlement would have to be paid. And, even if the claim ends in favor of the business owner, the company will still have to pay legal fees and deal with any repercussions that surround a claim, such as a tarnished reputation.
Who Does NY EPLI Protect?
Most NY employment practices liability policies protect any claims that are brought against a business owner, the business itself, management, and in some cases, other employees. This insurance covers any claims that are filed against the above-mentioned by the following individuals:
- Past employees
- Potential employees
- Temporary employees
- For-hire employees
- Independent contractors
What Does New York Employment Practices Liability Insurance Cover?
New York employment practices liability insurance provides coverage for the costs that are associated with various types of employee claims. Examples of claims include:
- Breach of employment contract
- Deprivation of career opportunity
- Failure to employ or promote
- Mismanagement of employee benefit plans
- Negligent evaluation
- Sexual harassment
- Wrongful discipline
- Wrongful infliction of emotional distress
- Wrongful termination
What New York Employment Practices Liability Insurance Doesn't Cover
NY employment practices liability insurance typically does not cover:
- Actions that occurred outside of the United States
- Civil fines
- Claims of bodily injury
- Criminal fines
- Liabilities for acts of intentional or dishonest wrongdoing
- Property damage
- Punitive damages (can vary by state)
- Rest and meal times
- Social media usage
- The Consolidated Omnibus Reconciliation Act (COBRA) associated claims
- The Employee Retirement Income Security Act (ERISA) associated claims
- The National Labor Relations Act (NLRA) associated claims
- The Worker Adjustment and Retraining Notification Act (WARN) associated claims
- Unemployment benefits
- Unpaid wages
- Workers compensation
How Much Does New York Employment Practices Liability Insurance Cost?
How much does New York employment practices liability insurance cost? The costs that are associated with a legal claim filed by an employee, customers or vendors can be astronomical. These costs can include legal fees, court fees, settlement fees, public relations, and anything else that occurs as a result of a lawsuit. Trying to cover those costs out of pocket could potentially ruin a business. Being covered by employment practices liability insurance will help to soften the financial blow that comes when and if an employee files a claim.
The cost of this insurance varies. There are a number of factors that are taken into consideration when determining the cost, such as the type of business that is being covered, the number of people the business employees, any claims that may have been filed against the business in the past, and the net-worth of the business.
An Ounce Of Prevention Is Worth A Pound Of Cure
To help prevent employee lawsuits, educate your managers and employees about your guidelines and acceptable behavior so that eliminate problems before they start. Following are some ideas you can implement in your business right away:
- Conduct background checks on all possible candidates.
- Conduct periodic performance reviews of employees and carefully note the results in the employee's file.
- Create a job description for each position that clearly defines expectations of skills and performance.
- Create an effective record-keeping system to document employee issues as they arise, and what the company did to resolve those issues.
- Develop a screening and hiring program to weed out unsuitable candidates on paper before calling them to interview in person.
- Develop an employee handbook detailing your company's workplace policies and procedures. It should include attendance, discipline, and complaints. The employee handbook should also contain an employment at-will statement and an equal employment opportunity statement.
- Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.
- Institute a zero tolerance policy regarding discrimination, substance abuse and any form of harassment. Make sure you have a policy that allows employees to report infractions without fear of corporate retribution.
- Post policies in the workplace and place and also them in employee handbooks so policies are crystal clear to everyone.
- Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
- Use an employment application that contains an equal employment opportunity statement along with a statement, that if hired, employment will be "at-will," meaning their employment can be terminated at any time - for any reason or for no reason at all - with or without notice. Also ensure that your employment application does not contain any age indicators, such as date graduated high school, as this could increase your risk for age discrimination claims.
Further Reading On Management Liability Insurance
- Directors And Officers Insurance For Nonprofits
- Directors And Officers Liability Insurance
- Educators Legal Liability Insurance
- Employment Practices Liability Insurance
- Fidelity And Crime Insurance
- Sexual Abuse And Molestation Insurance
- Sexual Misconduct Liability Insurance
NY Employment Practices Liability Insurance Quotes
Request a New York Employment Practices Liability Insurance quote in Albany, Amherst, Auburn, Babylon, Binghamton, Bronx, Brookhaven, Brooklyn, Buffalo, Clarkstown, Clay, Colonie, Elmira, Glen Cove, Greenburgh, Hamburg, Hempstead, Huntington, Islip, Ithaca, Jamaica, Jamestown, Long Beach, Manhattan, Middletown, Mount Vernon, New Rochelle, Newburgh, Niagara Falls, Orangetown, Oyster Bay, Perinton, Poughkeepsie, Queens, Rochester, Rome, Rye, Schenectady, Smithtown, Southampton, Staten Island, Syracuse, Tonawanda, Troy, Union, Utica, Watertown, West Seneca, White Plains, Yonkers and all other cities in NY.
New York Insurance Rules & Regulations
In the state of New York, there are a couple of different types of insurance that are regulated by the state that you should be aware of - as well as the regulations behind them. Understanding what is required for business and personal insurance will help you make sure that you have the right insurance if you ever decide to open a business or even if you are simply looking for information on what kinds of personal insurance you need and what sort of oversight there is for them. Let's take a closer look at personal and business insurance in NY State.
NY Commercial Insurance
The first type of insurance is general liability insurance. Although general liability insurance is not required by law for New York businesses, it is a good thing to have. General liability protects companies from lawsuits that stem from slips and falls, damage to property while they are on the premises and a variety of other potential incidents that customers may file a lawsuit for. General liability simply keeps you safe in case something happens to someone on your property and they decide to bring a lawsuit against you.
In addition, businesses in New York must carry specific types of insurance such as Worker's Compensation insurance when they have at least one full or part-time employee. This does not apply to independent contractors and subcontractors. The only other regulation in New York is that commercial vehicles that are operating as part of a business must carry commercial auto insurance.
New York Personal Insurance
Now, we move onto personal insurance starting with auto insurance. New York State requires that anyone operating a motor vehicle carry liability insurance with $25,000 for bodily injury to one person and $50,000 total for a single accident. In addition, motorists must carry $10,000 for property damage as well.
There are also some regulations governing life insurance. In Article 32 of the New York Consolidated Law it says that residents have a free look period that is limited to 10 days, as well as a grace period of 31 days and then insurance companies must make timely payments within 30 days of receiving notification of the death. If the insurance company does not make these payments on time, then interest can be added to the amount owed. You can find out more about this life insurance information as well as information on the New York state guaranty that ensures that you will receive a payment even if your life insurance company goes out of business.
If you are looking for state specific Employment Practices Liability insurance quotes, costs and information: California Employment Practices Liability Insurance, Colorado Employment Practices Liability Insurance, Delaware Employment Practices Liability Insurance, Florida Employment Practices Liability Insurance, Illinois Employment Practices Liability Insurance, Kentucky Employment Practices Liability Insurance, New Jersey Employment Practices Liability Insurance, New York Employment Practices Liability Insurance, Oregon Employment Practices Liability Insurance, Pennsylvania Employment Practices Liability Insurance, Texas Employment Practices Liability Insurance, Washington Employment Practices Liability Insurance.