Commercial Insurance
Employment Practices Liability
Covers claims from employees alleging discrimination, harassment, or wrongful termination.
What It Is
Employment practices liability (EPLI) covers claims by employees and job applicants alleging wrongful employment practices, such as discrimination, harassment, wrongful termination, or retaliation. Defense costs can be significant even when claims have no merit.
What It Typically Covers
- Defense costs and settlements for covered employment claims
- Claims of discrimination, harassment, wrongful termination, and retaliation
- Some policies can add claims from customers or vendors (third-party coverage)
Common Gaps to Watch For
- Wage and hour claims are typically excluded or limited.
- Claims-made policies cover claims made while the policy is active, so avoid gaps.
- Your retention or deductible can be significant.
- Punitive damages may not be covered, depending on the state.
Who Usually Needs It
Any business with employees, especially as it grows. Even small businesses face employment claims.
What Underwriters Consider
- Number of employees and turnover
- Employee handbook and HR practices
- Prior claims
- Industry and locations
Questions to Ask
- Is my policy claims-made, and what is my retroactive date?
- Are wage and hour claims covered at all?
- Is third-party coverage included?
- What is my retention?
All coverage is subject to policy terms, conditions, and exclusions.
Last reviewed: November 1, 2026
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Licensed in Illinois.