Employment Practices
Liability Insurance (EPLI)
Employment Practices Liability Insurance (EPLI) helps protect your business from employment-related claims—like wrongful termination, discrimination, harassment, and more. It covers legal fees, settlements, and other costs if an employee, former employee, or applicant takes legal action.
What is EPLI insurance?
EPLI is a type of coverage that helps businesses manage the risks that come with employment-related claims. It helps pay for legal expenses if your business is accused of:
Sexual harassment
Discrimination (based on race, gender, age, disability, etc.)
Wrongful termination
Failure to hire or promote
Breach of employment contract
Retaliation
Negligent evaluation
Emotional distress due to management actions
It may also help with certain claims related to ADA compliance—such as allegations that your space isn’t accessible to someone with a disability.
Do I need EPLI?
Smaller businesses often don’t have a dedicated HR department, legal counsel, or formal employee handbooks—all of which can leave them vulnerable to claims.
If a customer, employee, or former employee sues your business over a workplace-related issue, EPLI can help cover:
Legal defense costs
Settlements or court-ordered judgments
Claims filed by current, former, or potential employees
For a claim to be covered, your EPLI policy must be active both when the incident occurs and when the claim is filed. This is called “claims-made” coverage, and your policy may include a retroactive date to define what’s eligible.
What’s not covered by ELI?
EPLI does not cover:
Workplace injuries or illnesses (covered by workers' comp)
Property damage
Criminal or intentional acts
Independent contractors or 1099 workers
Wage and hour disputes
Fines, penalties, or punitive damages
Equity compensation disputes
Wrongful Termination
An employee is let go due to consistent underperformance. Months later, they file a lawsuit alleging age discrimination. Even without proof of wrongdoing, lack of documentation results in a $630,000 settlement.Racial Discrimination
An employee is overheard using racial slurs toward a customer. Despite company training, multiple witnesses confirm the incident. The business settles the case for $48,000.Gender Discrimination
A former staff member claims male colleagues were promoted while she was overlooked. Legal fees alone top $100,000—regardless of whether the claim is ultimately upheld.