Employment Practices Liability (EPLI)

Covers claims from employees — wrongful termination, discrimination, harassment. As essential as it is unglamorous.

Employment practices liability insurance covers claims brought by employees — wrongful termination, discrimination, harassment, retaliation, and similar workplace allegations.

These claims are surprisingly common and expensive, and they’re specifically excluded from general liability. EPLI pays for legal defense (often the biggest cost, even for a claim without merit) and any settlement or judgment. Coverage can extend to claims from applicants and, sometimes, third parties like customers.

Any business with employees has this exposure, and it grows with headcount. Many insurers pair EPLI with access to HR resources that help prevent claims in the first place.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.