Protection against workplace claims

Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) covers claims by employees alleging discrimination, harassment, wrongful termination, or retaliation — paying legal defense and settlements even when the employer did nothing wrong. These lawsuits are common and expensive to defend.

Who needs Employment Practices (EPLI)?

Any business with employees
Companies in the hiring/firing process
Businesses with HR challenges
Industries with high turnover
Companies without dedicated HR departments
Businesses of all sizes (small companies are often targets)

What's covered

Discrimination Claims

Allegations of discrimination based on race, gender, age, religion, disability, or other protected characteristics.

Sexual Harassment

Claims of sexual harassment by supervisors, coworkers, or even third parties like customers.

Wrongful Termination

Claims that an employee was fired illegally or in violation of employment agreements.

Retaliation

Allegations that an employee was punished for reporting misconduct or filing a complaint.

Failure to Promote

Claims that promotion decisions were made based on discriminatory factors.

Wage & Hour Disputes

Some policies cover claims related to overtime, misclassification, and other wage issues.

What's not covered

Criminal acts and intentional illegal conduct
Punitive damages (in some states)
ERISA and benefits violations (usually)
Workers' compensation claims
OSHA violations
Breach of employment contract (sometimes)

Examples by industry

Health & Beauty

A former stylist sues your salon for wrongful termination; EPLI covers the legal defense and any settlement.

Food & Restaurants

A server alleges harassment by a manager; EPLI covers your restaurant's defense and resolution costs.

Cleaning & Maintenance

A cleaner files a discrimination claim over scheduling; EPLI handles the defense and settlement.

Professional Services

An employee alleges they were passed over for promotion due to bias; EPLI covers the claim.

Retail & E-commerce

A store associate sues over wrongful termination; EPLI pays for the legal defense.

Transportation

A driver files a harassment complaint against a dispatcher; EPLI covers the resulting claim.

Technology

A developer alleges discrimination in a layoff; EPLI handles your defense and any settlement.

Home Services

A crew member sues over a hostile-work-environment claim; EPLI covers the legal costs.

Creative & Media

A designer alleges retaliation after a complaint; EPLI responds to the employment claim.

Real Estate

An agent sues the brokerage for wrongful termination; EPLI covers the defense and settlement.

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Part of the Knack guide

Learn Employment Practices (EPLI) alongside every other coverage in our full guide.

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Related coverages

Often purchased together

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