What’s the Difference Between EPLI and Workers’ Compensation Insurance
Few businesses are immune from the possibility that their employees could suffer a work-related illness or injury. While we most often associate these types of incidents with industrial or warehouse occupations that involve heavy physical labor, office workers can also develop afflictions such as carpal tunnel syndrome and stress that can keep them off the job.
If you’re an employer, you need to protect yourself by carrying the right insurance protection. You also need to understand the difference between EPLI and workers’ comp coverage.
Is Workers’ Comp the Same as Employers Liability Insurance?
Workers’ compensation insurance and employment practices liability insurance (EPLI) are both designed to offer protection for employers against claims made against them by their workers. While the two are sometimes related, there are differences in what each will cover. As a business owner, you will likely need both types of insurance to fully protect your organization.
What Is Workers’ Compensation Insurance?
Workers’ comp provides financial benefits to workers who suffer a work-related injury or illness. Here’s a simple example of how workers’ compensation insurance functions — suppose an employee injures his back while lifting a crate. Workers’ compensation would cover his medical bills and a portion of the income he would lose if his injury leaves him unable to work.
Other benefits available under workers’ comp include the cost of rehabilitation and retraining, as well as compensation to surviving family members if the illness or injury results in the death of the employee.
What Is Employment Practices Liability Insurance?
EPLI will protect your business and its assets if an employee decides to sue you. It will cover any adverse judgment that requires you to pay compensation to an employee due to your negligent actions, as well as any related legal expenses. EPLI will protect you in some injury-related scenarios, as well as against claims regarding your company’s practices in areas such as discrimination, sexual harassment, wrongful termination, invasion of privacy, emotional distress and negligent compensation.
Exploring the Relationship Between Workers’ Comp and EPLI
It’s important to note that when your employees receive workers’ comp benefits, they forfeit their legal right to sue you in the wake of a job-related illness or injury. However, if their workers’ comp claim is denied, they could still file suit against your company. In this scenario, your EPLI coverage would go into effect. Your policy would cover any judgment you are required to pay, as well as related court fees and legal costs.
Employment Practices Liability Insurance Versus Workers Comp Coverage: Which Is Best for Your Business?
If you operate a small business in the New York City area, the experts at Astoria-based Kokkoris Insurance Services can help you explore your protection options. In most cases, carrying both workers’ comp — which is mandatory for most New York businesses — and EPLI coverage will provide the most comprehensive solution for your company.
Contact us to learn more about the difference between EPLI and workers’ comp coverage and to receive a no-obligation quote today.