EPLI Protects Businesses from Employee Lawsuits


Employment Practices Liability Insurance (EPLI) provides protection for employers in the event that an employee files a claim regarding discrimination, failure to promote, harassment, and more. Large companies usually have ample coverage. However, small to mid-size businesses often lack a legal department or handbook specifying policies regarding hiring and terminating practices.

Liability Risks

Employers are at risk for an employment claim from the moment they interview a potential employee. This is because that individual could claim discrimination in the event that the employer does not hire them. Active staff members can also pose a liability risk. For example, if an employer terminates an employee due to attendance issues, that employee may file a wrongful termination suit.

To reduce these risks, companies can take the following steps:

  • Analyze their risk level with a trusted insurance provider like The Reilly Company
  • Purchase the proper level of EPLI based on risk analysis
  • Provide an employee handbook stating company policies and procedures in regards to hiring, discipline, and termination
  • Create a screening process to remove incompatible applicants on paper before seeking in-person interviews

EPLI Coverage

How much EPLI will cost your business depends on numerous elements. Some of these include the number of staff members in your employ, employee turnover rate, and previous suits filed against your company (if any). If your company size meets the requirements, some insurers offer EPLI as an addition to a Business Owner’s Policy (BOP) or General Liability Policy (GL). Business owners can opt for a standalone policy as well should they prefer that option.

Regardless of which coverage route you choose to take, your company cannot afford to neglect EPLI. However, it can be difficult to determine how much EPLI coverage your business needs. To ensure you are not overpaying or under-insuring your organization, contact the experts at The Reilly Company.