What this coverage is
Employment practices liability insurance (EPLI) helps respond when employees or, in some cases, applicants or former employees, allege wrongful employment practices. Covered allegations commonly include discrimination, harassment, wrongful termination, and retaliation.
Even claims that are ultimately unfounded can be costly to defend, which is why many employers carry EPLI. Policies are commonly written on a claims-made basis and may include access to risk-management resources.
Who commonly needs it
Any business with employees has some employment-practices exposure. The risk often grows with headcount, turnover, and complexity of HR processes.
Where this coverage commonly fits
Employee-related — coverage that becomes relevant once a business has employees. EPLI becomes relevant as a business hires and manages employees, addressing employment-related claims.
- Professional firms and offices
- Retailers and customer-facing businesses
- Healthcare and care organizations
- Hospitality and high-turnover workplaces
- Manufacturers and larger employers
What it may cover
- Claims of discrimination based on protected characteristics
- Sexual or other workplace harassment allegations
- Wrongful termination and retaliation claims
- Certain claims of failure to promote or hire
- Defense costs for covered employment claims, subject to terms
What it typically excludes
- Bodily injury and property damage
- Wage-and-hour violations, in many cases or sub-limited
- Intentional or fraudulent acts
- Claims known before the policy began
- Workers compensation matters
Hypothetical claim scenarios
These illustrative examples are for general understanding only. Coverage depends on the specific policy terms, conditions, and exclusions.
Wrongful termination claim
A former employee alleges wrongful termination. EPLI may help with defense costs and any covered settlement, subject to policy terms.
Harassment allegation
An employee files a harassment complaint that leads to litigation. The policy may help respond to the covered claim and defense costs.
Discrimination dispute
An applicant alleges discrimination in hiring. EPLI may help address the covered allegation, subject to terms and exclusions.
What commonly affects cost
- Number of employees and turnover
- Industry and historical claim patterns
- HR policies, training, and documentation
- Selected limits, retentions, and coverage scope
- Prior employment claims
How much does it cost?
On average, many businesses pay roughly $800–$3,000 per year, depending on employee headcount for employment practices liability insurance. That figure is a general national average only — your actual premium is set during underwriting.
- Employment Practices Liability Insurance$800–$3,000 per year, depending on employee headcount
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Industries where this coverage is common
Coverage needs vary business to business — most companies consider this protection regardless of industry. These are simply the industries where we see it most often.
See how this coverage works in your industry
A few examples from the business types we cover — this coverage applies well beyond the industries shown here.
Don't see your business type? Browse all industries we cover — coverage recommendations are tailored to every operation.
Frequently asked questions
What does EPLI cover?
EPLI commonly covers employment-related claims such as discrimination, harassment, wrongful termination, and retaliation, including defense costs, subject to policy terms.
Do small businesses need EPLI?
Any employer can face an employment claim. Small businesses are not immune, and defense costs alone can be significant even for unfounded claims.
Does EPLI cover wage-and-hour claims?
Wage-and-hour claims are commonly excluded or offered only on a limited basis. Review your policy to understand how these are treated.
Are third-party claims covered?
Some EPLI policies can be extended to cover third-party claims, such as harassment or discrimination alleged by customers or vendors. This varies by policy.
Can good HR practices reduce risk?
Clear policies, training, and documentation can help reduce employment-practice exposure, and many EPLI programs include risk-management resources.
How do I get a quote for this coverage?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help tailor coverage to your business.
Related coverages
- Professional Liability Insurance Protection against claims of professional error, omission, or negligent service.
- Cyber Liability Insurance Response and liability coverage for data breaches and cyber incidents.
- Umbrella / Excess Liability Insurance Additional liability limits that sit above underlying policies.
- Directors & Officers Insurance Protection for the personal liability of company directors and officers.