Employment Practices Liability Insurance (EPLI)

Common Claims Covered by EPLI

An EPLI policy may help cover claims related to:

• Wrongful termination
• Harassment, including sexual harassment
• Discrimination based on protected characteristics
• Failure to hire, promote, or retain an employee
• Wrongful discipline or demotion
• Breach of employment contracts
• Mismanagement of employee benefits
• Retaliation or career deprivation

Coverage typically applies to claims arising from alleged unintentional actions, errors, or failures to act, rather than deliberate or criminal conduct.

Why EPLI Matters for Your Business

Employment-related claims don't just affect large corporations. Small and mid-sized businesses are often more vulnerable, as a single lawsuit can result in significant legal fees, settlements, and reputational damage.

EPLI helps cover the cost of defending your business in court, including legal expenses, settlements, and judgments—depending on the terms of the policy. Many policies also extend protection to company leadership, such as directors, officers, managers, and supervisors.

This coverage allows business owners to focus on running their company, knowing they have support if an employment dispute arises.

Understanding How EPLI Coverage Works

When selecting an EPLI policy, it's important to understand key policy features, including:

• Defense costs: Whether legal defense expenses are included within the policy limits or covered in addition to them.
• Claims-made basis: Most EPLI policies are written on a claims-made basis, meaning coverage applies only if the policy is active both when the alleged incident occurred and when the claim is filed.
• Policy limits and deductibles: These should be aligned with your business size, workforce, and risk exposure.

Having clarity around these details ensures there are no surprises when a claim occurs.