Coverage Guide

Employment Practices Liability Insurance (EPLI)

Employment practices liability insurance (EPLI) covers a business against claims made by employees — or prospective employees — alleging wrongful employment practices. Wrongful termination, discrimination, sexual harassment, and retaliation claims can cost hundreds of thousands of dollars to defend even when the employer is not at fault. EPLI is one of the fastest-growing commercial lines because the frequency and severity of employment claims continues to rise.

What EPLI covers

Wrongful termination

Claims by current or former employees that they were terminated illegally — for discriminatory reasons, in retaliation for protected activity, or in violation of their employment contract.

Discrimination

Claims of discrimination based on race, gender, age, religion, national origin, disability, or other protected characteristics under federal and state employment law.

Sexual harassment

Claims of hostile work environment or quid pro quo sexual harassment. These claims are among the most expensive EPLI claims to defend and resolve.

Retaliation

Claims by employees that they were fired, demoted, or otherwise punished for filing a complaint, reporting illegal activity, or exercising a protected right.

Failure to hire or promote

Claims by applicants or employees that hiring, promotion, or compensation decisions were made on discriminatory grounds.

What EPLI underwriters evaluate

EPLI underwriting focuses on HR practices and prior claims history. Key underwriting factors:

→Number of employees (FT and PT)

→Employee turnover rate

→Whether an employee handbook is in place

→HR policies on harassment and discrimination

→Prior EPLI claims or EEOC charges in the past 3–5 years

→Whether the business uses at-will employment agreements

→State of operations (California and New York are higher risk)

→Recent layoffs or terminations

Who needs EPLI

Any business with employees needs EPLI. Small businesses are especially vulnerable because they often lack dedicated HR staff, formal HR policies, or documented termination procedures — making claims easier to file and more expensive to defend. Businesses in California, New York, Illinois, and Florida face higher EPLI exposure due to more plaintiff-friendly employment laws.

How AgencyAssist helps

EPLI applications require HR-specific information that most clients aren't used to providing to their insurance agent. AgencyAssist collects employee count, turnover history, prior claims, and HR policy information through a structured intake link. The completed application is generated automatically and ready to submit to carriers.

Faster EPLI submissions

Collect HR information through a plain-English intake link. EPLI application generated automatically.

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