Employment Practices Liability Insurance

Protect Your Business with Employment Practices Liability

Employment Practices Liability Insurance (EPLI) protects you when an employee, volunteer or applicant makes a claim against you or your business for wrongful employment. It can also provide coverage for third party claims from customers, vendors, clients, and tenants regarding alleged sexual harassment or discrimination. Whether or not the claim is valid, you still need to take action to defend your business. Legal costs to defend and settle these claims often cost upwards of $125,000, the average cost of an employment practices lawsuit settlement according to HR Morning.

No matter how careful you are in managing your business, a claim may arise and damage your business’ reputation, hurt employee morale, and cost your business a lot of money. These claims have been growing at an alarming rate each year due to economic conditions, demographics and the evolving legal environment. It is more important now than ever to protect your bottom line. Employment Practices Liability Insurance can help protect your business financially.

Employment Practices Liability Coverage

Employment Practices Liability can help protect you in the event of employment-related claims for acts including:

  • Discrimination (age, race, religion, sexual orientation, etc.)
  • Harassment
  • Retaliation
  • Hostile working environment
  • Invasion of privacy
  • Wrongful termination
  • Wrongful failure to promote
  • Violation of the Family and Medical Leave Act
  • Other employment-related issues

The cost of insuring your business for EPLI coverage depends on factors such as:

  • The number of people you employ (your business’s size)
  • Industry
  • The percentage of employee turnover
  • Hiring and firing practices
  • History of suits lodged against company
  • Whether the company has established rules and practices in place

Keep in mind that EPLI is a claims-made policy. This means claims are only covered if your policy is active when both the incident in question occurs and when the claim occurs, which may leave gaps. For example, if your business closes you may decide to cancel your EPLI. If a former employee files a discrimination or harassment claim against your business, your EPLI will not cover the suit because the claim wasn’t made while the policy was still active.

Understanding Employment Law

Various laws are in place to protect the rights of your current and prospective employees. It is important to understand and carefully follow the employment laws already in place.

  • Title VII of the Civil Rights Act of 1964
  • The Equal Pay Act of 1963
  • The Civil Rights Act of 1996
  • The Immigration Reform and Control Act of 1986
  • The Americans with Disabilities Act of 1990
  • The Bankruptcy Code
  • Equal Employment Opportunity Act of 1792
  • The Age Discrimination in Employment Act
  • Family Medical Leave Act
  • The Genetic Information Nondiscrimination Act of 2008

Learn more about the employment laws already in place to help protect your business from employment-related claims.


At Jessica Liu Insurance Services we want to help protect you and your business and ensure you’re properly covered. To find out more Employers Practices Liability Insurance (EPLI), as well as other products and services, speak to one of our agents today or send us message at [email protected].

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