What is Hard to Place - Employment Practices?

Employment Practices Liability Insurance (EPLI) is designed to protect businesses and organizations from claims related to workplace misconduct, such as discrimination, harassment, wrongful termination, and retaliation. However, certain risks, industries, or prior losses can make a business “hard to place” for standard EPLI markets. In these cases, specialized carriers or surplus lines may be required to secure appropriate coverage.

Hard to place EPLI is often needed by companies with a history of employment-related claims, those operating in high-risk sectors, or organizations with limited HR support or compliance infrastructure. These policies help mitigate liability exposures and legal defense costs stemming from employee allegations.

Who Needs It

Businesses that are more likely to need hard to place EPLI include small to mid-sized firms with limited risk management practices, rapidly growing companies, or those undergoing restructuring. Contractors, clubs, nonprofit organizations, and certain retailers may also face unique employment-related exposures that make standard coverage difficult to obtain.

For example, a nonprofit organization with high staff turnover and limited HR documentation might struggle to find traditional EPLI coverage due to perceived operational hazards and potential gaps in employment procedures.

What it Typically Covers

A hard to place EPLI policy generally provides protection for:

• Wrongful termination claims
• Discrimination based on race, gender, age, or disability
• Sexual harassment and hostile work environment allegations
• Retaliation and breach of employment contract

Some policies may also include third-party liability coverage, protecting against claims made by non-employees such as customers or vendors alleging harassment or discrimination.

For those seeking broader protection, Employment Practices Liability Insurance options can vary in scope and should be reviewed carefully with an insurance advisor.

Common Exclusions or Limitations

Even with specialized coverage, hard to place EPLI policies may exclude:

• Claims arising from intentional wrongdoing or criminal acts
• Wage and hour disputes (unless specifically endorsed)
• Violations of labor laws not related to discrimination or harassment

Underwriting factors often include previous claims history, number of employees, and the presence of employee handbooks or training programs.

Coverage can differ significantly—especially when placed through surplus lines markets—so it's essential to discuss with an agent to clarify limitations and available endorsements.

Factors that Influence Cost

Premiums for hard to place EPLI are typically higher due to increased underwriting risk. Key cost factors include:

• Prior loss history and frequency of employment claims
• Industry class and operational exposures
• Number of employees and geographic location
• Existing HR policies and risk management measures

For example, a company operating in multiple states with varying employment laws may face higher premiums due to jurisdictional complexity and legal risk variability.

Proof of Insurance & Compliance

Proof of EPLI coverage may be required by lenders, investors, or contractual partners. Even for hard to place accounts, insurers will typically provide a certificate of insurance that outlines key policy terms and limits. This documentation helps demonstrate that the organization has taken steps to manage liability exposures and protect its workforce.

How to Get a Quote

Obtaining coverage may involve working with a wholesale broker or accessing non-admitted markets. Be prepared to provide detailed information about your employment practices, past claims, and internal procedures. This helps underwriters assess risks accurately and offer tailored terms.

In some cases, specialized carriers like those offering Hard to Place EPLI or Directors and Officers Liability Insurance with employment-related endorsements can provide viable solutions.

Frequently Asked Questions

Still have questions? Talk to a local insurance expert.