Employment Practices Liability Insurance (EPLI)

All employers need liability insurance, regardless of their specific industry. While most know this, many are unaware that there are different kinds of liability insurance to make sure employers are covered in a wide variety of situations. For example, employment practices liability insurance has become a growing necessity as lawsuits over things like unfair hiring practices, wrongful termination, unfair HR policies, etc. have become more commonplace. Here’s what you need to know about this often misunderstood but highly necessary form of insurance:

Where Claims Come From

Most legal claims over employment practices come from current or former employees (although sometimes they can come from job applicants who were never hired). These are the claims you may be at risk for:
  • Wrongful termination
  • Unlawful hiring
  • Sexual harassment
  • Discrimination
  • Breach of contract
  • Emotional distress
  • Violations of wage and hour laws
  • Invasion of privacy
Now, it is important to realize that these are the more common reasons for lawsuits, but there are other employment practices reasons you may have a claim filed against you. You can lower your risk by having a great HR team and keeping up with regular anti-harassment and proper work ethics training, but this still unfortunately does not guarantee you will not end up facing a claim.

Why Liability Insurance is So Important

Liability insurance is the best form of protection because it helps ensure you will not go bankrupt in the event of a claim. Instead of you having to use company funds or personal ones to pay for your legal costs, your policy will pay out for you. Your coverage amount will depend on factors like the size of your company, the amount of employees you have, etc., but it will usually be a high enough amount to make sure that a liability claim will not be financially devastating.
Halcyon Underwriters
Employment Practices Insurance

EPLI Insurance Our office offers several markets to assist you in writing with the top admitted carriers: Employment practices liability insurance, known in the trade as EPL insurance or EPLI, provides coverage to employers (PDF) against claims ma...
First Choice Insurance Intermediaries, Inc.
Employment Practices Liability Insurance

Employment practices liability insurance covers (up to the policy limits) damages for which an employer is legally liable such as violating an employee's civil or other legal rights. In addition to paying a judgment for which the insured is liable, i...
Program Brokerage Corporation
Professional Liability Insurance

Professional Liability Insurance Program Brokerage Corporation (PBC) is the go-to-source for producers seeking excellent Professional Liability Products and service for their existing accounts and prospects. Our Professional Liability divisi...
Alexander J. Wayne & Associates, Inc.
Employer Practices Liability Insurance

Employee lawsuits can be devastating to a business; they can be inconvenient, costly and time consuming. These lawsuits have become a significant risk for businesses across the United States and they continue to increase posing more of a threat to s...
Surplus Line Managers, Inc.
New England’s Premier Special Risk GA

Surplus Line Managers, Inc. is New England's premier Excess, Surplus and Specialty Program Managing General Agency. We are members of the American Association of Managing General Agents and the National Association of Professional Surplus Lines Offic...
Gorst & Compass Insurance
Professional Liability Insurance

Contact us today to take advantage of our 30+ “A” rated Admitted and Non-Admitted Professional Liability Markets. Our professionals specialize in professional liability insurance coverages and will help you and your clients make the right decisions w...
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Further Reading 
The purpose of third-party coverage in an Employment Practices Liability (EPLI) policy is to protect an organization and its employees from accusations of wrongful acts committed against customers, clients, vendors, and suppliers. Some EPLI policies...
You need Employment Practices Liability insurance (EPLI) to protect you from lawsuits filed (justly or unjustly) by anyone who you employ, have employed, or even considered employing. Before you buy this essential coverage, be sure to ask these qu...
The purpose of third-party coverage in an Employment Practices Liability (EPLI) policy is to protect an organization and its employees from accusations of wrongful acts committed against customers, clients, vendors, and suppliers. Some EPLI policies ...
Since Title VII of the Civil Rights Act of 1964 passed, the issue of employees' rights continues to be controversial. Employers involved in interstate commerce are prohibited from discriminating against applicants. Understanding How Fast Lawsuit Ris...
According to insurance industry estimates, fewer than 50% of companies carry EPLI -- and the smaller the employer, the lower the percentage. Although the cost of coverage varies, a $1 million policy with a $5,000 deductible usually costs from $50 to ...