5 Reasons your business needs Employment Practices Liability Insurance

Employment Practices Liability

What is Employment Practices Liability?

Let’s start with what Employment Practices Liability insurance is: Special insurance coverage for lawsuits filed by current or former employees dealing with wrongful termination, sexual harassment, discrimination, breach of contract, wage / hour law violations and other areas. Key areas that any company with a handful employees should have in their portfolio.

Who should have EPL Insurance?

Any company that has employees should consider having EPL. Even if you only have one employee, a comprehensive employee handbook addressing employee conduct or business and umbrella insurance, EPL insurance can help protect your business.

Reasons why your company should consider EPL

1 – Employee Lawsuits are increasing: According to SHRM (Society for Human Resource Management)  The number of employees filing complaints or lawsuits against employers has increased over the past 12 months. The increase is attributed to both the COVID outbreak along with social justice awareness.

2 – Lawsuit settlements are getting more expensive: Many cases are reaching new record settlement amounts which may not be covered by your regular business insurance because of the subject of the suit.

3 – Companies of any size face risks: Even if you have only one employee, ensure you follow all local, state, and federal laws in addition to complying with current workplace safety regulations ~ your business still needs to be protected against any employee issues.

4 – Legal expenses are covered: Businesses that are found not at fault will still have legal fees but EPLI covers them.

5 – Regular business insurance doesn’t cover: Commercial Liability policies usually don’t include EPLI claims. Commercial Umbrella policies may also exclude them.


Speak to Brian M. Kilcoyne, CIC of H&K about the coverage your company needs today.

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