Employment Practices Liability Can Suck Your Business Dry: Does Insurance Help?

Employment Practices Liability Insurance (EPLI)

Known as EPL insurance or EPLI, Employment Practices Liability Insurance provides an employer protection against employee claims made on discrimination, harassment, breach of contract, wages, hour law violations, and emotional distress.

Such a claim is generally filed when an employee is bullied based on factors including age, color, cast, creed, gender, and any disability they have.

This insurance is a part of the United States law and covers wrongful acts arising from employment practice.

How EPLI Helps

Employers do everything to make the environment of the company good by treating all employees fairly, but too often, they are held accountable for the actions of other employees, clients, vendors and/or customers.

All businesses are exposed to the risk of being litigated for employment practices. Things as small as an assumption of someone not getting hired or promoted thinking the employer discriminated can lead you to the court for violating EPL law.

EPL claims and grievances are registered on a daily basis and 50% of all businesses are thought to either have faced it or are likely to face.

You need to prepare your business since the very first day for a similar occurrence. There are two ways you can prepare for it:

  • Know and abide by the government policies that are in best interest of both employers and employees.
  • Get the business covered with Employment Practices Liability Insurance.

Remember, claims related to wrongful termination, defamation, retaliation, harassment and discrimination, privacy invasion, and other employment related problems are not something old and big businesses get.

Small business are at an equal risk of facing such issues and so it is important for all business, old or new, big or small, to get EPLI coverage.

What EPLI Doesn’t Cover

Employee Practices Liability Insurance does not protect you against deliberate and deceitful acts that are proved. Moreover, bodily damages and property losses are also not covered in this policy.

What is Covered Under EPLI

Lawsuits that are filed against business by the following are covered under EPL insurance:

  • Vendors
  • Customers
  • Former Employees
  • Existing Employees
  • Leased Employees
  • Independent Contractors
  • Shortlisted Employment Candidates
  • Temporary/Contractual Employees


  • The plan covers a broad range of employee liability claims from different groups of people who are a part of the company

  • EPLI protects business from bearing defense and other costs to deal with such lawsuits

  • It limits compensatory damages for small businesses

  • It indirectly helps keep the reputation of businesses intact

  • The plan often includes trainings that are given to people who are a part of your company, ultimately preventing possible employment claims in future

  • You get legal advice through the legal advice helpline of your insurance company

  • Insurance company provides you with an audit checklist, policy information, and other important documents to help you comply with EPL law

If you have a business that is not covered with EPLI, you are exposed to huge possible losses. Head out and get your business protected with EPLI before it is too late!