What it is
Employment practices liability insurance (EPLI) helps with claims that an employer treated an employee or job applicant unfairly. Common examples are wrongful termination, discrimination, harassment and retaliation. It can help pay legal defense costs and covered settlements or judgments.
EPLI is separate from workers’ compensation, which covers work-related injuries and illnesses.
What it may cover
- Claims of wrongful termination
- Claims of discrimination, harassment or retaliation
- Legal defense costs, subject to the policy terms
- Some policies add help with HR questions or a hotline
Who may need it
You may need this coverage if:
- You have employees, or are hiring
- You hire, discipline or let people go
- You would not want to pay for a lawsuit out of pocket
Coverage, limits, exclusions and eligibility vary by insurance company and policy, so the policy wording is what counts.
Questions worth asking
- Does the policy cover my defense costs, and do they reduce my limit?
- Are wage and hour claims excluded or limited? They often are, so ask.
- Does it cover claims from contractors or applicants?
- Is there a deductible or retention?
Related coverage
Reviewed by a licensed agent. A licensed CBIS agent goes over this section with you, so you only look at what fits your business.
Ready to talk it through? Call (858) 283-7575 or book a free call with a licensed agent. Not sure this is the right coverage? Start with our guide: what insurance does my business need?