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Employment practices liability insurance

Employment practices liability insurance (EPLI) provides insurance protection for small businesses that hire, manage, and terminate employees. It covers expenses related to employee lawsuits.

How employment practices liability insurance protects your business

Employment practices liability insurance covers your legal expenses when an employee files a lawsuit alleging discrimination, wrongful termination, harassment, or other wrongful acts.

In such cases, your employment practices insurance will provide funds to cover your:

  • Attorney's fees
  • Settlement costs
  • Legal judgments
  • Administrative and other court costs

Employment practices liability insurance does not cover:

  • Civil and criminal fines
  • Punitive damages
  • Wages you should have paid
  • Instances of intentional employer wrongdoing
  • Damage you caused to employee property
  • Alleged injuries to employees
  • Litigation regarding unemployment benefits
  • Disputes surrounding workers’ compensation claims
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Who needs employment practices liability insurance?

Any small business that has employees should consider EPLI coverage.

Businesses in the following industries may need EPLI protection:

Employment practices liability insurance eligibility requirements

Most small businesses are eligible for employment practices liability insurance. However, firms that lack basic human resources policies on matters such as employment at will, discrimination, sexual or workplace harassment, and ensuring accommodations for disabled employees may have difficulty securing coverage. 

Also, businesses that don’t use employment applications or conduct periodic employee appraisals, and those that have been the target of prior employment practices lawsuits, may not be good candidates for this type of insurance.

Find free quotes for employment practices liability insurance

Insureon helps small business owners compare commercial insurance quotes from A-rated U.S. carriers with one easy online application. Start a quote today to protect your business against employment-related claims.

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Updated: February 13, 2024

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