EPLI insurance may be costly, but a business may be unprotected without it.

Employee practices liability insurance (EPLI) is a must-have for all businesses, big and small. EPLI insurance protects companies against claims of discrimination, harassment, wrongful termination, emotional distress, and many other common employee complaints. Every business with employees risks getting hit with an employee lawsuit, no matter how careful they think they are.



The cost of employee practices liability insurance depends on a variety of factors. Underwriters typically consider the following:

• Number of employees (usually # 1 determination of premium)
• The financial worth of the company
• Industry or business (certain industries inherently carry more risk than others)
• Turnover rates
• Hiring and firing procedures
• History of claims
• Written company procedures on employee conduct and training

Another big factor in the cost of EPLI insurance is the amount of coverage the employer seeks. Most EPLI policy limits range from $100,000 to $1,000,000. It’s also important to note that many EPLI policies include self-insured retention. The amount of coverage your business will need has much to do with the same risk factors listed above. It’s a good idea to talk to an insurance adviser or broker to determine the best coverage limits for your company.

As far as cost goes, most small and medium-sized businesses can expect to pay between $800 and $3,000 (depending upon industry) annually for EPLI coverage. This range will typically cover a business with 5 – 20 employees. For larger companies, those in a high-risk industry, or those with a history of claims, yearly EPLI premiums could increase substantially.

Paying $4,000 yearly for EPLI may seem a hefty cost to a medium-sized business owner. Still, it will sure seem worth the price if you ever get hit with age discrimination, sexual harassment, or a wrongful termination lawsuit. Employment Practices Liability Insurance (EPLI) has been falling in price for years as more and more insurance companies offer the policy and seek to stay competitive.

Now is a great time to shop around for EPLI policies. There are more options, and the price is as low as ever.

Just take care to study each policy carefully or to review it with your insurance broker. There is still no standard for EPLI, meaning the policies vary greatly in coverage. Some will not cover wrongful termination of an implied contract, wrongful demotion, or failure to grant tenure claims. Others will not cover independent contractors even though they do have the ability to sue your company.

We strongly recommend meeting with an insurance agent to discuss EPLI insurance, and costs for your business. We would happily answer all your questions and recommend the best policies for your budget and situation. Complete this form to get started!

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