The termination
A former employee claims they were fired in retaliation for a complaint.
EPLI can pay for your defense and covered settlements.
Management & Financial Liability
Employment practices liability, for the people side of business.
Employment practices liability insurance (EPLI) covers claims from employees, former employees and applicants alleging discrimination, harassment, wrongful termination, retaliation and similar employment wrongs.
What EPLI covers.
These claims can arise from a single hire or termination, and defense costs add up quickly even when the business did nothing wrong. EPLI is often packaged with D&O, and some carriers include access to HR and employment-law resources.
- Discrimination and harassmentClaims based on protected characteristics, and hostile work environment allegations.
- Wrongful termination and retaliationClaims that an employee was fired or punished unlawfully.
- Hiring and promotion decisionsFailure to hire, promote or accommodate.
- Defense and settlementsLegal costs, settlements and judgments, subject to the retention.
- Third-party claimsHarassment or discrimination claims by customers or vendors, when added.
What it typically doesn’t cover
- Wage-and-hour claimsCommonly excluded, or covered for defense only under a sublimit.
- Workplace injuriesCovered by workers' compensation. Workers' Compensation Insurance
- Benefit plan claimsERISA and benefit plan claims need fiduciary liability. Directors & Officers (D&O) Insurance
- Prior or known mattersClaims tied to events before the retroactive date or already known.
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The harassment complaint
An employee alleges harassment by a manager.
The policy can defend the company and the manager.
The applicant
A rejected job applicant alleges discrimination in hiring.
Failure-to-hire claims are typically covered.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Directors & Officers (D&O) InsuranceProtects company leaders and the organization against claims alleging wrongful management decisions or actions.Workers' Compensation InsuranceMedical care and lost wages for employees injured on the job.Professional Liability / E&O InsuranceClaims alleging that your professional advice, services or work caused a financial loss.Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.Questions
Common questions about EPLI, answered.
Do small businesses need EPLI?
Employment claims don't depend on company size. Even a business with a handful of employees can face a costly claim, and general liability policies typically exclude employment practices.
Does EPLI cover wage-and-hour lawsuits?
Usually not, or only for defense costs under a sublimit. We'll show you exactly how each quote handles it.
How much does EPLI cost?
EPLI pricing depends on how many employees you have, turnover and any recent layoffs, the states where employees work, your claims history and the retention you choose. HR practices and handbooks can help. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.