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Mar 09, 2012

Employment Practices Liability Insurance or “EPLI” is insurance that covers certain employment related claims made by employees. 

EPLI is a critical coverage for any business that has employees, but it is particularly important for those businesses with employees that work with the public or even on-site at other businesses.  Even though business owners strive to be fair and non-discriminatory, you never know when miscommunication or circumstances will lead to a lawsuit.  Often, the Defense Costs portion of the policy is the most valuable.


You might be asking, “Aren’t EPLI related claims something isolated to large corporations?”  We’re all familiar with the headline cases, but 41% of all EPLI suits are brought against small employers with 15 to 100 employees, and those don’t often make the news.


EPLI related charges have been on the rise for years.  In 2007, the Equal Employment Opportunity Commission (EEOC) recorded nearly 83,000 charges.  In 2010, that number rose to nearly 100,000 with an average award of $182,500.  Over half of all suits came in the Service, Retail, Manufacturing and Wholesale segments.


While EPLI policies vary (review your policy for details), they generally cover:


  • Sexual harassment
  • Discrimination or workplace harassment
  • Wrongful discharge or termination
  • Failure to employ or promote
  • Wrongful demotion or discipline
  • Wrongful failure or refusal to hire or promote
  • Defense costs for breach of employment contract allegations
  • Third Party allegations of discrimination or sexual harassment


  Contact your PLC agent to learn more about EPLI insurance for your business.


© 2019, PLC Insurance. The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.

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