Employment Practices Liability (EPLI)

Questions

• Do I need EPLI insurance?

  If you have employees, in practice yes — no law requires EPLI, but every hire, firing, promotion, and pay decision can generate a claim that your general liability and workers' comp policies exclude. The tipping points: your first employee, fast hiring or layoffs, high-turnover industries, and investor or board expectations at funded companies.

• What does EPLI insurance cover?

  EPLI pays defense costs, settlements, and judgments for employment claims: wrongful termination, discrimination, harassment, and retaliation, plus adjacent allegations like failure to promote, negligent evaluation, and wrongful discipline. It does not cover employee injuries (workers' comp territory), punitive damages or fines, unpaid wages you owed anyway, or — on many forms — wage-and-hour claims at all.