Employment Practices Liability Insurance (EPLI)
Protect your business and its people with Employment Practices Liability Insurance (EPLI) from Melton McFadden. Our EPLI solutions are designed to safeguard against costly employment-related claims such as discrimination, wrongful termination, harassment, and retaliation. Tailored to businesses of all sizes, our policies include coverage for legal defense, settlements, and judgments—so you can hire, lead, and grow with confidence.
Employment Practices Liability Insurance (EPLI)
Running a business—whether it’s a cozy corner café or a booming tech company—means facing all kinds of risks. One of the biggest? Employee lawsuits.
Claims related to hiring, firing, and everything in between are more common than most business owners realize. According to the 2017 Hiscox Guide for Employee Lawsuits, the average cost of an employee lawsuit hovers around $160,000. Yikes.
That’s not pocket change for most businesses, and the financial fallout can be devastating. That’s where Employment Practices Liability Insurance (EPLI) comes in. At Melton McFadden, we help businesses of all sizes find affordable, reliable EPLI coverage to stay protected—no matter what comes their way.
What Is EPLI Insurance?
EPLI insurance protects your business from claims related to the employment process, such as:
- Hiring
- Firing
- Promotions
- Workplace conduct
These claims can come from current, former, or even prospective employees, and they’re often directed at company leadership like managers, officers, and directors.
While many assume that only big corporations are targets, the reality is that small businesses are hit more often. Why? Because large companies usually have HR departments, written policies, and legal resources. Smaller businesses? Not so much.
That’s why EPLI is so essential—it helps level the playing field and shields your business from the legal and financial stress of employment-related claims.
What Does EPLI Cover?
EPLI is often offered as an endorsement to a Business Owner’s Policy (BOP) or General Liability Insurance. Coverage varies by provider, but most policies include protection from claims of:
- Discrimination
- Sexual harassment
- Wrongful termination
- Retaliation
- Defamation
- Failure to promote
- Inaccurate performance evaluations
Your policy will typically cover legal fees, attorney costs, and settlements. It protects not just your business, but your leadership team and employees, too.
Important note: EPLI is generally a claims-made policy, which means the claim must be filed while your policy is active. If you let coverage lapse—even if the incident happened while it was active—you’re not covered.
What EPLI Doesn’t Cover
While EPLI provides broad protection, it won’t cover everything. Exclusions may include:
- Bodily injury or property damage
- Purposeful misconduct
- Violations of U.S. labor laws
Bottom line: you’re still responsible for staying compliant with employment laws, even with EPLI in place.
How Much Does EPLI Cost?
Good news: EPLI is often affordable—especially as an endorsement to your existing BOP or general liability policy. The cost depends on factors like:
- Business size
- Number of employees
- Employee turnover rate
- History of past claims
- Whether you have HR policies and documentation in place
EPLI vs. EBLI: What’s the Difference?
They sound similar, but EPLI and EBLI are very different.
- EPLI protects you from employment-related claims (harassment, discrimination, etc.).
- EBLI (Employee Benefits Liability Insurance) covers you if there’s an administrative error with employee benefits—like miscommunication or enrollment mistakes.
Both are valuable. Just make sure you know which one you need (hint: probably both).
Why Your Business Needs EPLI
Even with just one employee, your business is vulnerable. A single lawsuit could cause:
- Major financial loss
- Serious damage to your reputation
- Ongoing legal headaches
EPLI coverage gives you peace of mind—and a financial safety net—so you can focus on running your business, not fighting lawsuits.
Melton McFadden EPLI Insurance
At Melton McFadden, we offer comprehensive, customizable EPLI coverage to keep your business protected.
Whether you’re just getting started or managing a growing team, we’ll help you find the right coverage to fit your needs and budget.
Contact us today to learn more about our EPLI options or to get a quick, no-pressure quote.