Employment Practices Liability Insurance (EPLI)

What Does Employment Practices Liability Insurance Cover?

Employment Practices Liability Insurance, sometimes known as EPLI, can help protect against claims from your employees such as, but not limited to:

  • Harassment
  • Discrimination
  • Wrongful termination
  • Retaliation
  • Wrongful failure to promote
  • Certain other employment related issues

Employment related claims can lead to substantial legal costs. An EPLI policy typically provides coverage for defense costs and damages for employment related claims. In today’s litigious landscape, businesses should manage their risks by having coverage in place before a lawsuit arises.


Does My Business Need EPLI?

Claims related to employment can arise at businesses of all industries and sizes. In the U.S., there are many federal, state, and local laws related to the treatment of current, prospective, and former employees based on their sex, color, race, ethnicity, religion, age, disability and other protected statuses and characteristics. Depending on the circumstances, a company may be subject to a combination of multiple federal, state, and local laws, each with their own nuances.

While an employer can take certain steps to help proactively manage their risk (such as having an experienced human resources department, partnering with inside our outside counsel, and maintaining compliant and up-to-date policies, procedures and handbooks), the potential for an employment claim remains an ever-present threat.

Whether you are a nonprofit, private company, a publicly traded corporation, or financial institution – if your business has employees, you should discuss your risk with your local insurance agent.

How Much Does Employment Practices Liability Insurance Cost? 

If you are wondering how much you will pay for EPLI coverage, there are several factors to consider. The higher the limit you choose, the higher your premium will be. Other factors include, but are not limited to:

  • The number of employees you have
  • Your HR procedures
  • The industry your business is in
  • Your claims history

Employment Practices Liability Insurance Quotes

If you are looking for quotes for employment practices liability insurance, we would be happy to show you some options. Reach out to one of our offices to start the process today.  

What is Wage and Hour Coverage?

Wage and hour violations are some common complaints that arise. Most people do not realize that these claims are typically not covered by a traditional EPLI policy. You should review your policy carefully with your insurance agent to determine what is covered. In some cases, endorsements are available that include a limited amount of coverage for wage and hour claims, such as a certain amount for legal fees and costs incurred in defending against a wage and hour case (although wage and hour judgements and settlements are still often excluded from coverage even with such a rider).

Why You Should Renew Your EPLI Coverage

Typically, Employment Practices Liability Insurance coverage is written on a claims-made basis. What this means is that a claim regarding an alleged incident needs to have been made during the coverage period. It could be months or years before employment claims come forward, and if your coverage has ceased, the claim will likely be denied.  

Request A Quote for EPLI

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