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What Is Employment Practices Liability Insurance and Why Does Your Business Need It?

No matter what your field of business, it is likely that your company has a general commercial liability policy. This protects your business from claims of bodily injury and property damage caused by your operations or products. It also covers injuries that occur on the company site. While it is considered comprehensive liability coverage, there are numerous risks it does not cover.

What Is EPLI?

To address many of the liabilities not covered by your general liability policy, you need employment practices liability insurance. Some of the types of claims addressed by EPLI include:

  • Sexual harassment
  • Discrimination based on gender, race, sex or age
  • Wrongful termination
  • Retaliatory termination
  • Invasion of privacy

The policy covers claims made by potential, current or former employees in these and other areas related to employment practices.

Why Does Your Business Need an EPLI Policy?

As explained by the experts at, employment practices liability claims are increasing. Indeed, over the last two decades, the number of these lawsuits has grown by 400%. The respondents in nearly half of these suits have been small businesses with less than 100 staff on their payrolls. Moreover, associated costs have are also increasing. The current average cost of out of court settlements is $75,000, while average damages awarded by juries is $217,000. You and your staff work hard to provide your clients with high-quality services and products, having an EPLI policy will help to ensure that you will be able to continue to do so no matter what the future brings.

Henry Henrynms (Author)