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Employment Practices Liability Insurance (EPLI): A brief overview for Insurance Agents

As an insurance agent, you may have heard of Employment Practices Liability Insurance (EPLI) before, but do you really understand what it is and why it's so important? In this article, we will provide a complete overview of EPLI, its coverage, and its benefits, helping you better serve your clients and protect their businesses.

What is Employment Practices Liability Insurance?

EPLI is a type of insurance that protects businesses from claims made by employees or former employees related to wrongful employment practices, including discrimination, harassment, wrongful termination, and retaliation. It provides coverage for legal defense costs and any settlements or judgments awarded against the company.

Why is EPLI important?

EPLI is important because it can protect businesses from potentially devastating financial losses. If a business is sued by an employee for discrimination, harassment, or other wrongful employment practices, the legal costs and potential damages can be significant. EPLI can help cover those costs and minimize the financial impact on the business.

What does EPLI cover?

EPLI typically covers a wide range of wrongful employment practices, including but not limited to:

  • Discrimination based on age, gender, race, religion, or disability

  • Sexual harassment or other forms of harassment

  • Wrongful termination

  • Retaliation

  • Failure to promote or hire

  • Breach of employment contract

  • Defamation

  • Invasion of privacy

EPLI may also provide coverage for claims brought by third parties, such as customers or vendors, who were affected by the actions of an employee.

What are the benefits of EPLI?

The benefits of EPLI include:

  • Legal defense costs: EPLI can cover the costs of hiring a lawyer and defending against a lawsuit.

  • Settlements and judgments: If the business is found liable for wrongful employment practices, EPLI can cover the cost of any settlements or judgments awarded against the company.

  • Peace of mind: Knowing that they have EPLI coverage can give business owners peace of mind, allowing them to focus on running their business without worrying about potential legal claims.

  • Attract and retain talent: Having EPLI coverage can demonstrate to employees that the company takes employment practices seriously, making it more attractive to potential new hires and helping to retain current staff.

How much does EPLI cost?

The cost of EPLI varies depending on a variety of factors, including the size of the business, the industry it operates in, and the level of coverage needed. Typically, the cost is calculated as a percentage of the business's payroll or as a flat rate based on the number of employees.


Employment Practices Liability Insurance is a crucial form of coverage for businesses of all sizes and industries. As an insurance agent, it's important to educate your clients on the importance of EPLI and help them find the right coverage to protect their business and their employees.

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