Why Your Business Needs Employment Practices Liability Coverage

Recent headlines reflect the current landscape of business and include concerns over equal treatment, fair compensation and sexual harassment in the workplace. They also underscore why your company needs employment practices liability insurance. While you can find more details about this kind of coverage at, it doesn’t hurt to get a brief overview of how it can help your firm.

How EPLI Benefits Your Company

Some startling statistics can help put your potential losses into perspective. Look at these findings from a study by leading insurance industry group Trusted Choice:

  • Employee lawsuits multiplied by 400 percent over the last 20 years
  • 41 percent of cases were against private companies with less than 100 employees.
  • Most out-of-court settlements averaged around $75,000
  • In cases that went to court, the average jury award reached $217,000

Employment practices liability insurance, commonly called EPLI, is designed to mitigate these kinds of losses, covering the costs or defending against lawsuits or actions involving several different kinds of claims:

  • Hostile work environment
  • Workplace and sexual harassment
  • Discrimination based on age, race, religion, gender and other protected classes
  • Wrongful termination or demotion
  • Failure to employ or promote
  • Other potential violations of employment law

Protect Your Firm’s Future

You focus on doing what’s right by your employees, but claims can arise despite your best intentions. That’s why you shouldn’t forgo employment practices liability coverage in your indemnity protection. To learn more about your EPLI options, start with a visit to