Who Needs It? EPLI Edition


What is EPLI?

  • EPLI stands for Employment Practices Liability Insurance. It provides liability coverage to the protect business owner from current and former employees.

Who needs EPLI?

  • Any business owner or company with employees. Even with just one employee, business owners are at risk for an employment practices suit.

Who and What is at risk?

  • Every company, brand, department stores, restaurants, etc., with employees. It’s simply not worth the risk!
    • The average EPLI lawsuit settlement is $125,000
    • The median judgment against an employer is approximately $200,000
    • 25% of judgments are more than $500,000
    • In 2015 alone the EEOC listed over 161,000 complaints, with over 40% of claims involving firms with less than 50 employees.

Is EPLI mandatory?

  • Unlike Workers Compensation in most states, no EPLI is not. Just keep in mind, many businesses have been forced to close their doors due to an EPLI claim.

So What’s covered under an EPLI Policy?

  • Employees alleging-
    • Sexual harassment and Discrimination
    • Wrongful termination
    • Breach of employment contract
    • Wage and hour
    • Defamation
    • ADA Compliance


What is Third Party Employment Practices Liability?

  • Allegations of discrimination or harassment against the employees and/or the employer from third parties that they came into contact with while doing business on behalf of the organization.
    • For example, if a UPS driver came into your work establishment to drop off a package and harassed a female employee.

Why should I invest in Employment Practice Liability Insurance?

  • Three of five employers are sued by former employees every year. Are you willing to risk the odds?
  • Over 40 percent of EPL claims are against firms with fewer than 100 employees. This means that even the small, family owned companies are at risk.
  • EPL coverage may not be covered under other policies such as general liability. They are two separate types of coverage, make no mistake and be covered fully by getting both.

Are you curious about the stipulations of EPLI? Ready to get a quote? Call Hawkguard Insurance at (951) 494-7272.