What is Employment Practice Liability Insurance?


In recent decades, the number of lawsuits filed by employees against their employers has increased. Most suits have been filed against large corporations, but any company that has employees could be faced with such lawsuits. Employment Practice Liability Insurance (EPLI) is a type of liability insurance designed to cover an employer’s legal costs of defending a lawsuit in court against claims by workers that their legal rights as employees of the company have been violated.

Some insurers offer EPLI as a standalone policy and others offer it as an endorsement to a Business Owners Policy. The cost of EPLI coverage depends on the type of business, the number of employees, and various risk factors such as whether the company has been sued over employment practices in the past.

EPLI can provide protection against many kinds of employee lawsuits, including claims of:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

The EPLI policy can cover your company for the legal costs of defending a lawsuit in court whether your company wins or loses the suit. Policies typically do not pay for punitive damages or civil or criminal fines, and liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.

To learn more about employment practice liability insurance (EPLI) available through Enterprise Insurance Services* we invite you to contact us at 978-656-5594 or 877-671-2265.

*All insurance policies offered by Enterprise Insurance Services are placed through our partner, HUB International NE, LLC.

Insurance products are not a deposit, not guaranteed by Enterprise Bank, are not FDIC Insured, not Insured by any government agency, and may lose value.

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