What is Employment Practices Liability Insurance?

Employment practices liability insurance (EPLI) covers businesses against employee-related claims, such as discriminatory behavior during appraisal periods and hiring practices or workplace harassment issues. Human resources teams benefit from EPLI as it helps manage legal defense costs, including settlements and damages. Whether you are a small business owner or a large corporation, this insurance provides valuable protection from costly employee-related claims and workplace legal expenses.

What is Included in an Employment Practices Liability Insurance Policy?

Employment Practices Liability Insurance (EPLI) offers essential protection for businesses, covering claims like wrongful termination, discrimination, and retaliation. It also includes legal defense costs, settlements, and damages. You can always personalize your policy to cover specific risks and protect your business against employment-related lawsuits. Whether it is wage disputes or privacy issues, this policy protects against a range of unforeseen situations, including the following:

Wrongful Termination

Shields your business from allegations that an employee was unfairly dismissed, addressing claims of improper firing practices and legal consequences.

Discrimination

Protects your company against legal action for unfair treatment in hiring, firing or promotion decisions based on race, gender, or other protected characteristics.

Harassment Claims

Defends against accusations of harassment in the workplace, covering expenses related to unwanted conduct, both physical and verbal, toward employees.

Retaliation Claims

Protects against employee claims like filing a complaint or reporting misconduct. These claims can lead to legal issues and financial loss for businesses.

Failure to Promote

Helps avoid lawsuits when employees allege being bypassed for a promotion due to discriminatory reasons or lack of fair opportunity being provided.

Invasion of Privacy

Guards your organization from claims that employees’ privacy was violated, such as unauthorized surveillance or leaking confidential personal information.

Breach of Employment Contract

Addresses disputes from unfulfilled terms in employment contracts, protecting your business from claims of contract violations or misunderstandings.

Wage and Hour Disputes

Helps resolve disputes over compensation, ensuring your business is covered when employees challenge wage calculations, overtime, or job classification.

Defamation

Minimizes the impact of legal claims related to defamatory statements made about employees, preventing damage to their reputation and your business.

Employment-Related Negligent Hiring/Retention

Defends your business against claims of negligent hiring or retention practices leading to harm caused by an employee, protecting your operation.

What is Not Covered Under Employment Practices Liability Insurance?

  • Employee Injuries (covered under workers' compensation)

  • Criminal Acts Committed by Employees

  • Breach of Contract Claims (unless related to employment issues)

  • Injuries or Harassment That Occur Outside the Workplace

  • Discrimination Claims Covered Under State or Federal Workers' Compensation Laws

  • Claims Related to Sexual Harassment by Non-Employees

  • Illegal or Unlawful Business Practices

  • Punitive Damages (in some jurisdictions)

  • Claims Related to Alleged Mismanagement of Benefits Plans

  • Defamation or Harassment by Third Parties (unless specifically included)

How Much Does Employee Practices Liability Insurance Cost?

Employment practices liability Insurance costs vary based on factors like the size of your business, claims history, and overall industry. While small businesses may pay around $222 per month for EPLI coverage, premiums can range from $800 to $3,000 annually, depending on specific circumstances.

Who Needs Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) is essential for any business with employees. It protects employers against claims of discrimination, wrongful termination, and any violation of laws mentioned in the employee handbook. This coverage is particularly vital for companies with multiple employees or those interacting with the public. Here is a list of all the groups that can make a wise investment for financial protection and ensure legal compliance with Employment Practices Liability Insurance.

  • Small Business Owners with Employees

  • Retail Store Owners

  • Restaurants and Food Service Businesses

  • Construction Companies

  • Healthcare Providers

  • Franchise Owners

  • Technology Companies

  • Manufacturers

  • Real Estate Agencies and Brokers

  • Legal Firms

  • Financial Institutions

  • Non-Profit Organizations

  • Educational Institutions

  • Transportation and Logistics Companies

  • Professional Service Providers (Lawyers, Accountants, etc.)

Get a Free Employment Practices Liability Insurance Quote

Want a free EPLI quote for your business? Insure C-Store has got you covered! You can simply start by entering your full name and phone number and selecting your preferred business property before pressing ‘submit.’ You will be led to an easy form asking for your business information, insurance coverage details, gas station coverage (if applicable), and contact information.

For further guidance, you can visit us or call our agents to help you find the perfect coverage to secure your business.

OR

Frequently Asked Employment Practices Liability Insurance Questions

Ans) No, employment practices liability insurance (EPLI) and workers' compensation are different. Workers' compensation covers injuries or illnesses that occur at work or on-site, while EPLI protects businesses against claims directly linked to employment practices, such as discrimination, wrongful termination, or retaliation. Both are equally important, but they cover distinct aspects of employee relations.

Ans) Employment practices liability insurance is not necessary but highly recommended, especially for businesses with high employee counts. This will give you protection against claims like workplace discrimination, harassment, and other employment-related issues. Even small businesses can face lawsuits, and having EPLI ensures financial protection in such cases, helping cover legal fees and settlements.

Ans) No, EPLI and errors and omissions (E&O) insurance are different. E&O insurance protects businesses from claims of negligence or failure to perform professional duties, typically in service industries. EPLI, on the other hand, covers claims related to employment practices, such as discrimination or wrongful termination. Both are important but serve different purposes.