Employment Practices Liability Insurance (EPLI)
Protect your business from costly employee lawsuits alleging discrimination, harassment, wrongful termination, and other employment-related claims.
What is Employment Practices Liability Insurance?
EPLI protects your business from employee claims of wrongful employment practices, including discrimination, harassment, wrongful termination, retaliation, and failure to promote. It covers legal fees, settlements, and judgments.
Legal Defense
Covers attorney fees and court costs
Settlements & Judgments
Pays for settlements and court awards
All Employment Claims
Covers current, former, and prospective employees
⚠️ The Growing Risk
- • Employment lawsuits have increased 400% in the past 20 years
- • Average employment lawsuit costs $160,000 to defend
- • 41.5% of employers faced an employment charge in 2022
- • Employee wins in court average $200,000+ in damages
What's Covered
Discrimination Claims
Age, race, gender, religion, disability, sexual orientation, or other protected class discrimination allegations.
Sexual Harassment
Hostile work environment, unwanted advances, quid pro quo harassment, and other sexual harassment claims.
Wrongful Termination
Claims that an employee was fired in violation of law, public policy, or employment contract.
Retaliation
Claims of retaliation for whistleblowing, filing complaints, or exercising legal rights.
Failure to Promote
Allegations that promotions were denied based on discrimination or other unlawful reasons.
Wage & Hour Violations
Claims of unpaid wages, overtime violations, or misclassification of employees.
Who Needs EPLI?
Every business with employees should consider EPLI, especially:
All Employers
Any business with 1+ employees
Growing Companies
Rapid hiring increases risk
Healthcare
High employee turnover
Retail & Hospitality
Large hourly workforce
Construction
Seasonal hiring and layoffs
Startups
Informal HR practices
Common EPLI Claim Scenarios:
- •An employee claims they were passed over for promotion due to age discrimination
- •A former employee sues for wrongful termination after being fired for poor performance
- •An employee reports sexual harassment by a manager or coworker
- •Multiple employees file a class-action lawsuit over unpaid overtime
- •An employee claims retaliation after filing a workers' comp claim
Reduce Your Risk
While EPLI is essential, prevention is your best defense:
📚Employee Handbook
Maintain clear, written policies on harassment, discrimination, discipline, and termination procedures.
🎓Regular Training
Conduct anti-harassment and discrimination training for all employees and managers annually.
📝Document Everything
Keep detailed records of performance reviews, disciplinary actions, and termination decisions.
👨💼HR Expertise
Consult with HR professionals or employment attorneys before major employment decisions.
⚖️Consistent Enforcement
Apply policies consistently across all employees to avoid discrimination claims.
🔍Investigate Complaints
Take all employee complaints seriously and conduct prompt, thorough investigations.
Get Your EPLI Quote
Fill out the form below to receive a customized Employment Practices Liability Insurance quote.
Frequently Asked Questions
Do I need EPLI if I only have a few employees?
Yes. Even businesses with 1-2 employees can face employment lawsuits. In fact, small businesses are often more vulnerable because they lack HR departments and formal policies.
Does EPLI cover independent contractors?
Generally no. EPLI covers claims by employees, former employees, and job applicants. However, if a contractor claims they were misclassified and should have been an employee, EPLI may provide coverage.
Does workers' comp cover employment lawsuits?
No. Workers' comp covers workplace injuries and illnesses. EPLI covers wrongful employment practices like discrimination and harassment. They're separate coverages.
Will EPLI cover punitive damages?
It depends on your policy and state law. Some EPLI policies cover punitive damages where legally permissible, while others exclude them. Review your policy carefully.