Employment Practices Liability Insurance (EPLI)
Employment practices liability insurance covers claims from your own employees and job applicants: wrongful termination, discrimination, harassment, retaliation, and failure to promote.
These claims do not require a large company. A single termination handled badly can lead to a lawsuit, and the defense costs arrive long before anyone decides whether the claim has merit.
What it covers
- Wrongful termination and discipline claims
- Discrimination and harassment, including claims against managers
- Retaliation claims after an employee complaint
- Defense costs and settlements
- Third party harassment by customers or vendors, when added
What it does not cover
- Wage and hour claims, which are usually excluded or sublimited
- Benefits and ERISA claims
- Workplace injuries (L&I and stop-gap in Washington)
- Punitive damages where the law does not allow them to be insured
Who needs it
Any business with employees, and especially those growing quickly, managing remote teams, or going through layoffs or restructuring.
What drives the price
- Number of employees and turnover
- Written HR policies and handbooks
- Prior employment claims
- Locations and states where employees work
- Retention (deductible) chosen
Where owners get caught: assuming the BOP covers employees
General liability specifically excludes claims from employees about how they were treated at work. Without EPLI, an employee lawsuit is defended out of company funds. Many carriers also include HR hotline services, which can prevent a claim entirely.
Employment Practices Liability: common questions
Does EPLI cover wage and hour claims?
Usually not, or only for defense costs under a small sublimit. Wage and hour disputes are among the most common employment claims, so ask about this specifically.
We only have five employees. Do we need EPLI?
Small employers are sued too, and have less cash to absorb defense costs. EPLI for a small team is often modestly priced relative to a single claim.
Can EPLI be bundled with D&O?
Yes. Many carriers package D&O, EPLI, and fiduciary liability into a management liability policy, which is often the most efficient structure for private companies.
Employment Practices Liability in practice
Illustrative stories of businesses that needed it, and what else their review turned up.
A Physical Therapy Clinic's Growth Plan Needed an HR Plan, and an Insurance Plan to Match
A two-location physical therapy practice was opening a third clinic and hiring fifteen people. The review found employment exposure, an owner's malpractice policy that didn't cover the clinic's other therapists, and a lease that asked for more.
EPLIE&OBOPStaffingA Staffing Agency Has Two Sets of Employees Who Can Sue It
A staffing firm placing warehouse workers had an EPLI policy for its own office staff. The review found that its real exposure was the hundreds of temporary workers it placed, and the client companies they worked for.
EPLIStop-gapE&OTechnologyA Tech Company Went From 25 to 110 Employees in a Year. Its EPLI Stayed at 25.
A venture-backed software company quadrupled its headcount after a funding round, then went through its first layoff. The review found an EPLI policy sized for a startup, and remote employees in states it had never considered.
EPLID&OCyberHealthcareHome Care Workers Drive to Every Shift. That Changes the Agency's Insurance.
A home care agency with sixty caregivers had a professional liability policy and little else. The review found high employment exposure, caregivers driving clients in their own cars, and a gap around abuse allegations.
EPLIAutoE&OBuilding servicesA Cleaning Company's Clients Wanted Three Things It Had Never Bought
A janitorial company bidding on office buildings kept hitting the same wall: property managers wanted stop-gap, a janitorial bond, and employment coverage. Here is how the program came together.
Stop-gapGLEPLIProfessional servicesA CPA Firm Bought E&O for Tax Mistakes. The Bigger Risk Was a Fake Email.
A twelve-person accounting firm had professional liability for errors in its work. The review found a claims-made trap in its switch of carriers, and a wire fraud exposure its E&O policy was never designed to cover.
E&OCyberEPLIUsually written alongside
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