Employment Practices Liability Insurance (EPLI) is a policy covering wrongful acts committed by directors and officers, management personnel and employees arising from the employment process. The most common covered claims include: wrongful termination, discrimination, sexual harassment and retaliation. EPLI also covers inappropriate work conduct, defamation, invasion of privacy, failure to promote, deprivation of a career opportunity and negligent evaluation. EPLI policies are written on a claims-made basis, and limits are eroded by defense costs.



Here’s what you need to know about employment practices liability insurance:

  1. Employment practices liability insurance coverage is a specifically designed policy and is, therefore, excluded from other policies such as the general liability policy or directors and officers policy

  2. Third party EPLI coverage could save your business. Businesses that have a high volume of contact with the public are more susceptible to certain claims (hotels, restaurants, country clubs, medical facilities, schools and religious institutions)

  3. The number of claims for workplace discrimination is rising as our country’s ethnic and racial composition evolves

  4. It is best that your EPLI policy does not exclude certain categories of claims, such as: assault and battery in a harassment context, wage-and-hour claims and claims alleging a violation of such laws as the family medical leave act (FMLA), the national labor relations act (NLRA), the fair labor standards act (FLSA) and the occupational safety and health act (OSHA).