Employment Practices Liability Insurance (EPLI)

What Is EPLI Insurance?

Employment Practices Liability Insurance (EPLI) protects businesses against claims made by employees alleging wrongful employment practices. This includes claims of discrimination, sexual harassment, wrongful termination, retaliation, breach of employment contract, and failure to promote.

Employment-related lawsuits are among the fastest-growing areas of litigation in the United States. Even businesses with strong HR practices and well-documented policies face exposure. EPLI provides legal defense and settlement coverage when these claims arise.

Who Needs EPLI Insurance?

Every business with employees should consider EPLI coverage. The risk increases with the number of employees, but even small businesses with a handful of staff members face employment practices claims.

Industries with high turnover, customer-facing roles, or physical labor environments—such as restaurants, construction, healthcare, and retail—are particularly vulnerable to employment-related lawsuits.

The Growing Threat

The average cost to defend an employment practices claim exceeds $75,000, and settlements can reach hundreds of thousands of dollars. Even frivolous claims require legal defense, which is expensive and time-consuming. EPLI covers both defense costs and settlements or judgments, protecting your business from these potentially devastating expenses.

What's Typically Covered