EPLI protects employers against claims of wrongful termination, discrimination, harassment, and other employment-related issues.
Employee lawsuits are more common than you think.
Employment Practices Liability Insurance (EPLI) protects your business from claims made by employees alleging wrongful employment practices — including discrimination, harassment, wrongful termination, and retaliation. These claims can come from current employees, former employees, or even job applicants.
Any business with employees. The risk increases with headcount, but even a single employee can file an EPLI claim. Small businesses are particularly vulnerable because they often lack formal HR policies and documented procedures.
A terminated employee files a wrongful termination lawsuit claiming age discrimination. They seek $250,000 in back pay, emotional distress, and punitive damages. The average EPLI settlement is $75,000 — and defense costs often exceed that, even when the employer wins. Without coverage, you pay for attorneys, depositions, and expert witnesses out of pocket, regardless of the outcome.
A small tech company fires an underperforming employee who then files a discrimination claim with the EEOC, alleging the real reason was their national origin. The EEOC investigates and the employee sues. The company's EPLI policy covers the EEOC response, legal defense, and the eventual $60,000 settlement — a cost that would have severely impacted the startup's runway.
RISKX — Commercial Insurance Agency | Licensed in All 50 States | (800) 400-8398 | [email protected]