EMPLOYMENT PRACTICES LIABILITY (EPL)

Protection against employment-related claims and workplace disputes

Employment Practices Liability Insurance (EPLI) protects businesses against claims arising from the employment relationship. These claims often involve allegations made by employees, former employees, or job applicants related to workplace practices, policies, or decisions.

EPLI addresses risks that are increasingly common — even for well-run, compliant organizations.

What Employment Practices Liability Insurance Covers

EPLI typically responds to claims alleging:

Wrongful Termination
Claims that an employee was terminated unfairly or unlawfully.

Discrimination
Allegations involving protected classes such as age, gender, race, disability, or religion.

Harassment
Including sexual harassment or hostile work environment claims.

Retaliation
Claims that an employee was penalized for reporting misconduct or exercising legal rights.

Failure to Promote or Hire
Allegations of unfair employment decisions.

Legal Defense Costs
Attorney fees, settlements, and judgments associated with covered employment claims.

Defense costs alone can be substantial — even when claims are unfounded.

What It Does Not Cover

EPLI policies commonly exclude:

• Wage and hour violations (unless specifically endorsed)

• Workers’ compensation claims

• Bodily injury or property damage

• Intentional or criminal acts

• Certain contractual disputes

• Claims arising from prior known incidents

Coverage depends heavily on policy language and endorsements.

Who Needs Employment Practices Liability Insurance?

EPLI is important for businesses of all sizes, including:

• Small and mid-sized employers

• Growing companies adding staff

• Organizations with remote or multi-state employees

• Nonprofits and educational institutions

• Businesses with managerial or supervisory employees

Even a single employee can create EPLI exposure.

How Coverage Is Structured

EPLI policies are typically written on a claims-made basis and include:

• Shared policy limits

• Retentions or deductibles

• Defense inside or outside the limits

• Optional endorsements, such as wage & hour coverage

Premiums and terms are influenced by HR practices, employee count, and prior claims.

Real-World Claim Examples

• An employee alleges wrongful termination after a performance dispute

• A harassment claim arises from manager conduct

• A job applicant claims discriminatory hiring practices

• An employee alleges retaliation after reporting misconduct

Employment claims often escalate quickly and are costly to resolve.

Why Proper Placement Matters

EPLI coverage varies significantly based on:

• HR policies and procedures

• Employee handbooks and training programs

• Company size and growth rate

• Multi-state employment exposure

Poorly structured EPLI coverage can result in significant uninsured losses.

Our Approach

At Cory Washington & Co., we take a proactive approach to EPLI placement. We work closely with clients to align coverage with their employment practices, risk tolerance, and growth plans — while helping identify opportunities to reduce exposure through stronger policies and training.

Strong workplaces start with informed protection.

Disclaimer

All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.