What Is EPLI?
In a workplace where employees are more aware of their rights than ever before, Employment Practices Liability Insurance (EPLI) is no longer optional — it’s essential. From allegations of wrongful termination to claims of harassment or discrimination, the risk of an employment-related lawsuit can affect businesses of all sizes.
EPLI offers the financial protection and legal support your company needs to handle these claims — whether they’re valid or not. It not only protects your bottom line but also helps maintain a positive workplace culture and corporate reputation.
This insurance typically includes protection for:
Wrongful termination or demotion
Sexual harassment or hostile work environment claims
Discrimination based on gender, race, religion, age, disability, or orientation
Retaliation or whistleblower claims
Misrepresentation during hiring or promotion
Defamation or emotional distress
Negligent evaluation or failure to promote
Even when you follow HR best practices, defending your business in court can be expensive and time-consuming. EPLI steps in to cover legal defense costs, settlements, and other related damages.
Who Should Have EPLI?
Any business that employs people can face an employment-related lawsuit — regardless of size, industry, or location. EPLI is especially critical for:
Startups and small businesses without dedicated legal or HR teams
Midsize and large employers with diverse and growing teams
Industries with high turnover or frontline employees (retail, hospitality, healthcare)
Companies undergoing layoffs, mergers, or organizational changes
Firms working with external contractors or freelancers
Even a single lawsuit can severely impact your operations or reputation — making EPLI an essential part of your risk management strategy.
Key Benefits of
Employment Practices Liability Insurance
Legal Defense Costs
Covers attorney fees, court costs, and legal expenses even if the claim is baseless.
Settlements and Judgments
Pays for financial damages or settlements resulting from covered employment claims.
Regulatory Compliance Support
Covers the cost of responding to investigations from regulatory agencies like the EEOC or local labor boards.
Third-Party Liability Coverage
Extends protection to claims from clients, vendors, or contractors alleging discrimination or harassment.
Workplace Risk Mitigation
Helps promote fair HR practices and reduce internal disputes, supporting a healthier workplace culture.