Commercial Insurance Business Owners Policy (BOP) Commercial Auto Commercial Flood Commercial Property Commercial Umbrella Data Breach Directors & Officers (D&O) Employment Practices Liability Environmental - Pollution Liability General Liability Product Liability Professional Liability (E&O) Workers Comp Personal Insurance

Pennsylvania Employment Practices Liability Insurance (QUOTES, COST & COVERAGE)

Get Pennsylvania employment practices liability insurance quotes, cost & coverage fast. EPLI covers PA businesses against employee’s claims that their legal rights as have been violated including; sexual harassment, discrimination, wrongful termination and more.

Pennsylvania Employment Practices Liability Insurance

Pennsylvania 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 Pennsylvania 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 PA 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 PA 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 Pennsylvania 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 PA EPLI Protect?

Most PA 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
  • Vendors
  • Customers

What Does Pennsylvania Employment Practices Liability Insurance Cover?

Pennsylvania 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
  • Discrimination
  • Failure to employ or promote
  • Mismanagement of employee benefit plans
  • Negligent evaluation
  • Sexual harassment
  • Wrongful discipline
  • Wrongful infliction of emotional distress
  • Wrongful termination

What Pennsylvania Employment Practices Liability Insurance Doesn’t Cover

PA employment practices liability insurance typically does not cover:

  • Actions that occurred outside of the United States
  • Bullying
  • Civil fines
  • Claims of bodily injury
  • Criminal fines
  • Liabilities for acts of intentional or dishonest wrongdoing
  • Penalties
  • 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 Pennsylvania Employment Practices Liability Insurance Cost?

How much does Pennsylvania 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

PA Employment Practices Liability Insurance Quotes

Pennsylvania Insurance

Request a Pennsylvania Employment Practices Liability Insurance quote in Anaheim, Bakersfield, Chula Vista, Concord, Corona, Elk Grove, Escondido, Fontana, Fremont, Fresno, Fullerton, Garden Grove, Glendale, Hayward, Huntington Beach, Irvine, Lancaster, Long Beach, Los Angeles, Modesto, Moreno Valley, Oakland, Oceanside, Ontario, Orange, Oxnard, Palmdale, Pasadena, Pomona, Rancho Cucamonga, Riverside, Roseville, Sacramento, Salinas, San Bernardino, San Diego, San Francisco, San Jose, Santa Ana, Santa Clara, Santa Clarita, Santa Rosa, Simi Valley, Stockton, Sunnyvale, Thousand Oaks, Torrance, Vallejo, Victorville, Visalia and all other cities in PA.

The Pennsylvania Department of Insurance

The PA Dept. of Insurance is the regulatory agency behind the insurance rules for the state of Pennsylvania. If you want to understand these rules, then this is definitely the agency that you need to focus on. Let’s start with limits within the state.

Pennsylvania Minimum Insurance Limits
  • For¬†auto insurance, Pennsylvania requires $15,000 per person and $30,000 per accident.
  • For¬†life insurance, there are certain regulations in place to determine how someone is able to get or offer life insurance, but there are no limits listed.
  • For¬†commercial insurance, insurance agents may offer broker or casualty insurance as well as covered property insurance, covered causes of loss, specified perils and open perils along with a number of coverage forms like builder’s risk, legal liability, building ordinance, glass, peak season, inflation guard and peak element.
PA Insurance Regulations

As for regular insurance regulations there are a lot of things that Pennsylvania provides that you can look up. For example, there are deadlines for the insurer to pay the claim or deny it, deadlines for submitting paperwork to prove a loss for insurance reimbursement, specific information your insurance company is required to give you and regulations on what information you have to provide to your insurance company.

One of the Pennsylvania regulations calls for you to be treated by your insurance company in good faith. This means that your insurer must be considered of your needs and must communicate completely and honestly with you about your policy and everything that you need to know about it in order to make a good decision. In turn, you are legally obligated to be honest and cooperative with your insurance company when it comes to your claim.

You should also be aware that your insurance company is required to offer prompt, honest and complete communications. The company and all of its representatives must respond to your communications within 15 calendar days with a complete response based upon the facts that are known.

Finally, be aware that your insurance company is required to have a fair claims process. Unless it is specified in your policy, you do not have to use the forms that are provided to you by your insurance provider in order to make a claim. You can create a list of losses on your own if you need to. In addition, insurers are not able to ask for unreasonable proof of loss. If you provide photographic evidence or video of items that you lost, insurers are not able to ask you to provide additional information.

Scroll to Top