Employment Practices Liability Insurance (EPLI)
Employment Practices Liability Insurance protects your business against claims made by employees, former employees, and job applicants alleging wrongful employment practices. Discrimination, wrongful termination, sexual harassment, retaliation, wage and hour disputes — these claims are increasing every year and can cost businesses hundreds of thousands in defense and settlements, even when the claims are unfounded. EPLI covers what your general liability policy explicitly excludes.
Coverages we place
- Discrimination claims (age, race, gender, disability, religion, national origin)
- Wrongful termination and constructive dismissal
- Sexual harassment and hostile work environment
- Retaliation against employees who file complaints
- Wage and hour disputes (where covered by endorsement)
- Failure to promote or hire
- Breach of employment contract
- Defense costs — often the largest expense even in unfounded claims
Who needs this coverage
Every business with employees. EPLI is especially critical for businesses with 10+ employees, businesses in states with strong employee protection laws (like California, New York, Florida), companies going through layoffs or restructuring, and industries with high employee turnover.
What drives your premium
- Number of employees (more employees = higher risk)
- Industry (hospitality, healthcare, retail have higher claim rates)
- Employee turnover rate
- HR policies and training programs in place
- Prior employment-related claims or EEOC charges
- State employment laws (some states are more litigious)
- Revenue and payroll size
Common exclusions
- Criminal acts by the employer
- ERISA and employee benefit plan disputes (covered by fiduciary liability)
- Workers' compensation claims
- Bodily injury (covered by GL or workers' comp)
- Intentional violation of law with knowledge
- Contractual penalties and liquidated damages
Frequently asked questions
How much does EPLI cost?
EPLI premiums typically range from $800–$3,000/year for businesses with 10–50 employees. Larger companies or those in high-risk industries may pay $5,000–$15,000+. The cost of a single employment lawsuit (often $75,000–$300,000+) makes EPLI one of the highest-ROI coverages available.
Does general liability cover employment claims?
No. General liability explicitly excludes employment-related claims. Without EPLI, your business pays for employment lawsuit defense and settlements out of pocket — which can be devastating even for meritless claims.
Do I need EPLI with only a few employees?
Yes. Businesses of all sizes face employment claims. In fact, small businesses are often more vulnerable because they may lack formal HR policies, documentation, and training that larger companies use to defend against claims.
Related coverage
Get a free quote or call (321) 206-8035.