Connecticut’s manufacturing industry is a vital pillar of the state’s economy, accounting for over 10% of the state’s GDP and employing more than 157,800 workers as of August 2024. From aerospace and medical device production to advanced materials and precision components, manufacturers drive innovation and create high-paying jobs across the state. CBIA
However, while Connecticut manufacturers focus on productivity and innovation, many are overlooking a critical area of risk: employment-related claims. Despite the financial and reputational threats these claims pose, a significant number of small and mid-sized manufacturing firms in the U.S.—including many in Connecticut—do not carry Employment Practices Liability Insurance (EPLI). According to a survey by Advisen, an Insurance Data Provider, only 32% of firms with 50 to 200 employees and 20% of firms with fewer than 50 employees have stand-alone EPLI coverage.
Employment-Related Risks in Connecticut Manufacturing
Connecticut’s manufacturers face unique workplace challenges that make EPLI coverage not just advisable—but essential.
Discrimination and Harassment
Manufacturing workplaces are often diverse in terms of age, gender, ethnicity, and background. Unfortunately, this can increase the likelihood of allegations related to discrimination or harassment. In recent years, the Connecticut Commission on Human Rights and Opportunities (CHRO) has seen a steady flow of employment discrimination claims—many originating from industrial workplaces.
Wrongful Termination
In a state known for its strict labor regulations, improper termination practices can be especially costly. Whether it’s layoffs prompted by shifting contracts or dismissals tied to performance issues, failing to document and follow proper procedures can expose manufacturers to serious legal consequences.
Wage and Hour Compliance
Connecticut employers must adhere to complex state and federal wage laws, including mandates on overtime, break periods, and employee classification. With the state’s minimum wage increasing steadily, wage and hour disputes are on the rise—and manufacturers are a frequent target of audits and complaints.
Health and Safety Allegations
Although primarily tied to workers’ compensation, poor safety practices or perceived negligence can lead to employment-related lawsuits, especially when an employee alleges retaliation after reporting unsafe conditions.
Why EPLI is Essential for Connecticut Manufacturers
Employment Practices Liability Insurance (EPLI) provides protection for claims arising from wrongful termination, discrimination, harassment, retaliation, wage disputes, and more. Here’s why EPLI should be a non-negotiable part of your risk management plan:
Financial Protection
Legal defense costs, settlements, and court-ordered judgments can easily reach six figures—even for a single claim. EPLI helps manufacturers manage these costs without draining working capital or disrupting operations.
Enhanced Risk Management
Most EPLI carriers offer free access to legal resources, HR consultation, and employee handbook reviews, helping employers stay ahead of compliance and avoid costly missteps.
Business Continuity and Reputation
An employment claim—especially one that attracts media attention—can damage your brand. EPLI coverage ensures that your company can respond quickly and professionally, limiting reputational harm and maintaining employee morale.
Are You Protected?
If you’re one of the many Connecticut manufacturers operating without EPLI coverage, now is the time to reassess your risk exposure. As employment laws become more complex and litigation more common, having this crucial coverage could be the difference between a manageable challenge and a devastating loss.
Contact our agency today to review your coverage options and learn how EPLI can help protect your business, your employees, and your bottom line. V.F. McNeil Insurance is a Trusted Choice® independent insurance agency located in Branford, Connecticut.
