What is Employment Practices Liability – Over 75 Employees?
Employment Practices Liability Insurance (EPLI) helps protect large businesses—those with over 75 employees—against claims made by employees related to workplace practices. These claims can include allegations of discrimination, harassment, wrongful termination, failure to promote, and other employment-related issues. As a company grows, so does the risk of facing employment-related lawsuits, making EPLI an important coverage for larger organizations.
Who Needs It
Any business with more than 75 employees should consider Employment Practices Liability Insurance. Larger workforces increase the likelihood of disputes or legal action, even when policies and procedures are followed. Industries with high employee turnover or complex HR operations are especially vulnerable. EPLI can help shield your company from the financial impact of defending against these claims.
What It Typically Covers
EPLI policies usually cover legal defense costs, settlements, and judgments arising from employment-related claims. Common covered situations include:
- Discrimination based on age, race, gender, religion, or disability
- Sexual harassment or hostile work environment
- Wrongful termination or demotion
- Retaliation following whistleblower actions
- Failure to hire or promote
- Mismanagement of employee benefits
Common Exclusions and Limitations
While EPLI offers broad protection, it does not cover every situation. Common exclusions may include:
- Criminal or fraudulent acts by the employer
- Workers' compensation or bodily injury claims
- Wage and hour disputes (unless added by endorsement)
- Contractual liability
Coverage terms vary by policy, so it's important to review your plan carefully to understand what's included and what's not.
Factors That Influence Cost
Several factors affect the cost of EPLI for businesses with over 75 employees:
- Number of employees and locations
- Industry and associated risk level
- Claims history and prior lawsuits
- HR policies and employee training programs
- Coverage limits and selected deductibles
Insurers may also consider whether your company has legal counsel or a dedicated HR department to manage employee relations.
Proof of Insurance & Compliance
While EPLI is not required by law in most states, having proof of coverage can be beneficial. It demonstrates that your business takes employee rights seriously and is proactively managing risk. Some clients, investors, or contracts may require this type of coverage. Always check specific state or industry requirements to stay compliant.
How to Get a Quote
Getting a quote for Employment Practices Liability Insurance is easy. Gather basic information about your business, including employee count, claims history, and HR practices. Then, get a customized EPLI quote to protect your growing team.
Frequently Asked Questions
Is EPLI required for businesses with over 75 employees?
No, EPLI is generally not required by law, but it is strongly recommended for larger businesses due to increased risk exposure.
Can EPLI help with claims from former employees?
Yes, most policies cover claims from current, former, and even prospective employees, depending on the terms of the policy.
Does EPLI cover independent contractors?
Some policies may extend coverage to claims involving independent contractors, but this is not always standard. Review your policy details.
Will EPLI cover wage and hour claims?
Typically, wage and hour claims are excluded unless added through a specific endorsement. Check with your insurer for options.
How can I reduce the risk of employment-related claims?
Implement clear HR policies, provide regular employee training, and document all employment decisions to help prevent disputes.
Still have questions? Talk to a local insurance expert.