Employment Practices Liability Insurance (EPLI) protects your business from lawsuits related to how you manage and treat employees. In today’s workplace, even a small misstep can lead to a big legal battle. EPLI helps cover your business if an employee—or even a job applicant—claims you violated their rights.
These lawsuits are often costly and complex. Without EPLI coverage, your business could face expensive legal bills, settlements, and judgments. No matter your industry or company size, EPLI helps you manage the risk.
Here’s a detailed breakdown of what EPLI typically covers:
Wrongful Termination
This coverage protects your business if an employee claims you fired them unfairly. Common accusations include termination based on discrimination, retaliation, or without proper cause.
Even if you followed proper steps, defending against a wrongful termination claim takes time and money. EPLI helps cover attorney fees, court costs, and settlements.
Discrimination
Discrimination claims are among the most common employment-related lawsuits. EPLI protects your business if an employee, applicant, or even former staff member claims they faced discrimination.
This can involve age, race, gender, disability, religion, national origin, pregnancy, sexual orientation, or other protected classes. The coverage includes defense costs and potential damages awarded to the claimant.
Harassment
Workplace harassment claims can seriously damage your reputation and finances. EPLI covers allegations of sexual harassment, bullying, verbal abuse, and hostile work environments.
Whether the accused is a manager, co-worker, or contractor, this coverage protects your business. It pays for legal defense and any settlements if you’re found responsible.
Retaliation
Retaliation happens when an employer takes negative action against an employee for reporting misconduct. For example, if someone reports harassment and then gets demoted or fired, they may sue.
EPLI covers these claims. It helps with costs related to retaliation lawsuits—even if your business had no malicious intent.
Employment-Related Misrepresentation
This coverage applies when someone claims your business gave false information during the hiring process. That might include promises about salary, job responsibilities, advancement opportunities, or benefits that weren’t delivered.
If a candidate or employee says you misled them, EPLI can help defend your business in court and cover related costs.
Failure to Promote
If someone believes they were unfairly passed over for a promotion, they might sue for discrimination or bias. EPLI provides coverage for those claims.
It helps when employees allege favoritism, gender bias, ageism, or racial inequality in promotion decisions. This protection helps employers navigate sensitive personnel issues legally and fairly.
Wage and Hour Violations
Many lawsuits stem from unpaid wages, unpaid overtime, or employee misclassification. While some policies exclude these claims, others offer limited coverage or legal defense support.
If available, this coverage can help with claims involving minimum wage violations, missed meal breaks, and unpaid overtime. Talk to your agent about what’s included and what might require a separate policy.
Employment Contract Breach
Sometimes employees sue because they believe you broke a promise. This could include not honoring an employment contract, failing to provide agreed-upon benefits, or demoting someone without cause.
EPLI can help cover costs if an employee accuses you of breaching a written or verbal contract. This includes legal defense and potential settlements.
Employment-Related Defamation
If someone claims you made false, damaging statements about them—like during a reference check, termination discussion, or performance review—EPLI helps.
Allegations of slander, libel, or character defamation can lead to lawsuits. This coverage defends your business and pays damages if you’re held liable.
Third-Party Coverage
Some EPLI policies also cover claims from non-employees. That includes customers, vendors, or clients who claim your employees harassed or discriminated against them.
This is especially valuable for retail, hospitality, and service-based businesses where staff regularly interact with the public.
Why EPLI Matters
Employment-related claims are rising. Even if your company has strong policies, lawsuits can still happen. One complaint—even if it’s unfounded—can lead to major legal expenses.
EPLI insurance gives you a safety net. It helps cover attorney fees, settlements, and judgments. More importantly, it gives you the confidence to manage your team with fairness and accountability.
Whether you have two employees or two hundred, EPLI helps protect your business, your leadership, and your reputation.
Need help choosing the right EPLI coverage for your business?
Call Combined Insurance Service LLC at 816-847-1911. We’ll walk you through your options and help create a policy that fits your needs.