What is Employment Practices Liability Insurance?

Employment practices liability insurance (EPLI) protects your business when current, former, or prospective employees claim you violated their legal rights. This includes allegations of discrimination, sexual harassment, wrongful termination, retaliation, and failure to promote. These claims are increasingly common and can be devastating even when unfounded.

Your general liability policy doesn’t cover employment-related claims. EPLI fills this critical gap.

What Does EPLI Cover?

EPLI covers legal defense costs and settlements or judgments for covered employment claims. This includes discrimination based on race, gender, age, disability, or other protected characteristics; harassment claims; wrongful termination; breach of employment contract; failure to hire or promote; negligent evaluation; and wrongful discipline.

Why Every Employer Needs EPLI

Employment lawsuits don’t just happen to large corporations. Small businesses face claims too, often without the resources to defend themselves. The average employment claim costs tens of thousands of dollars to defend, even when the employer wins. EPLI provides both defense funding and peace of mind.