What is Hard to Place EPLI?
Employment Practices Liability Insurance (EPLI) covers businesses against claims made by employees alleging discrimination, wrongful termination, harassment, and other employment-related issues. "Hard to place" EPLI refers to policies that are difficult to obtain due to factors such as a high-risk industry, poor claims history, or lack of risk management procedures. These policies often require customized underwriting and may be offered through surplus lines or specialty carriers.
Who Needs It
Hard to place EPLI is essential for businesses that may have difficulty securing standard coverage. This includes:
- Companies with a history of EPLI claims
- Startups or businesses with limited HR infrastructure
- Firms operating in high-risk sectors like hospitality, healthcare, or construction
- Organizations undergoing layoffs, mergers, or restructuring
Even small businesses can be targets of employment-related lawsuits, making EPLI an important consideration regardless of size.
What It Typically Covers
Hard to place EPLI policies may provide protection for claims involving:
- Wrongful termination
- Workplace harassment (including sexual harassment)
- Discrimination based on race, age, gender, or disability
- Retaliation
- Failure to promote or hire
Coverage often includes legal defense costs, settlements, and judgments, subject to policy limits and conditions.
Common Exclusions and Limitations
While coverage can be broad, there are common exclusions, including:
- Criminal acts or intentional wrongdoing
- Breach of contract unrelated to employment practices
- Workers’ compensation or bodily injury claims
- Fines and penalties imposed by regulatory agencies
Policy terms vary, so it's important to review coverage details and endorsements carefully.
Factors That Influence Cost
Several variables can affect the cost and availability of hard to place EPLI:
- Company size and number of employees
- Industry risk level
- Claims history
- Employee turnover rate
- HR policies and training programs
Carriers will assess these factors during underwriting to determine risk and premium.
Proof of Insurance and Compliance
Some states or clients may require proof of EPLI coverage, especially for government contracts or vendor relationships. While not always mandatory by law, having coverage can demonstrate strong risk management practices and help meet contractual obligations.
How to Get a Quote
If your business has had difficulty finding the right EPLI policy, a customized quote can help you understand your options. Get a quote today.
Frequently Asked Questions
What makes EPLI "hard to place"?
Factors like a history of claims, high-risk industry, or limited HR oversight can make a business more difficult to insure under standard EPLI policies.
Can small businesses get hard to place EPLI?
Yes, small businesses with unique risks or past claims may need to seek coverage through specialty providers.
Is EPLI required by law?
No, EPLI is not legally required, but it can protect businesses from costly employment-related lawsuits.
Does hard to place EPLI cover independent contractors?
Coverage depends on the policy terms. Some may include claims from contractors if specified in the policy.
How long does it take to get a hard to place EPLI quote?
It varies, but specialty brokers can often provide a quote within a few business days after reviewing your application and risk profile.
Still have questions? Talk to a local insurance expert.