Workplace lawsuits are one of the most common — and costly — risks facing businesses today. Employment Practices Liability Insurance (EPLI) protects your business when current, former, or prospective employees bring claims against you. Here’s why you can’t afford to go without it.
What EPLI Covers
EPLI covers claims alleging wrongful termination, discrimination (based on age, race, gender, religion, disability, or other protected characteristics), sexual harassment, failure to promote, wage and hour violations, and retaliation. It pays for your legal defense — which can easily exceed six figures — as well as settlements and judgments. EPLI typically covers claims brought by full-time, part-time, seasonal, and temporary employees, as well as job applicants.
Why Every Business Needs EPLI
You don’t have to be a large corporation to face an employment claim. Small businesses are actually disproportionately affected because they often lack formal HR policies, documentation procedures, and employment law expertise. A single wrongful termination claim can cost $75,000 to $125,000 in legal fees alone — before any settlement. Even if the claim has no merit, defense costs can be devastating without insurance.
Industries with Elevated EPLI Risk
Restaurants, hospitality businesses, retail operations, cannabis companies, and staffing firms face particularly high EPLI exposure due to high employee turnover, complex scheduling, and the nature of customer-facing work. Businesses in California — where employment laws are among the most protective of workers in the country — should treat EPLI as essential, not optional.
Reducing Your EPLI Risk
While EPLI insurance pays claims after the fact, proactive risk management reduces how many claims you face. Implementing clear HR policies, documenting performance issues and disciplinary actions, training managers on appropriate workplace conduct, and using consistent onboarding and termination procedures all reduce your exposure. Many EPLI insurers provide access to HR resources and hotlines as part of your policy — use them.
Bozzuto Group Can Help
EPLI premiums are based on the number of employees you have, your industry, your claims history, and the strength of your HR practices. At Bozzuto Group, we work with you to find the right EPLI coverage at a competitive price. Contact us to learn more.