Employment Practices Liability Insurance is commonly referred to as EPLI.  This coverage or product has been developed from the fact that basic General Liability Insurance was never designed to cover the actions of an employer.   Because of this, EPLI coverage has become one of the newest products offered.

The product is designed to insure the employer for claims brought by an employee, prospective employee or former employee.  Claims can stem from refusal to employ a qualified applicant, failure to promote an employee, a demotion, hourly wage/overtime disputes, wrongful discipline, sexual harassment, discrimination, humiliation, issues in the areas of race, color, creed, national origin, marital status, medical conditions, age, gender, sexual orientation or sexual preference, mental or physical impairments, slander, defamation of character or libel and invasion of privacy.

The general public is becoming more and more aware of their rights in these types of situations.  The federal and state courts are seeing an alarming increase in the number of cases filed annual, more than 100% increase in just the past 10 years.  In addition, the legal field has become extremely adept at filing and winning bigger and bigger awards.  The average award is in excess of $300,000 with defense costs reaching in excess of $200,000.

If you are an employer, then you are a potential target for this liability exposure.  Learning how to avoid these types of exposures and transferring the risk to an insurance company well versed in the coverage may be paramount to your companies survival.  Obviously, this is a very unique coverage and product line that requires an expertise and due diligence in assuring that your company or firm is adequately insured.  We work with all of the major carriers in the market place, please contact us for a quote or to answer any additional questions you might have.

We have included some real life claims compliments of Arch Insurance Group.


A supplies distributor with 275 employees was found liable and paid $120,000 for claims of age discrimination, wrongful termination, and retaliation by a 51-year-old employee. The lawsuit alleged that the employee was terminated after she complained to her manager about her concerns regarding unsafe working conditions in the company’s warehouse.

A female employee of a construction company with 430 employees filed a charge of discrimination with the EEOC alleging sex and pregnancy discrimination and retaliation. The lawsuit alleged that the employee informed her manager she was pregnant and formally requested 12 weeks of maternity leave after working for the company just over a year. After her request, the lawsuit alleged that her manager’s attitude changed towards her, her working environment became hostile, and she was told that the company would be hiring her permanent replacement when she went out on leave. The company incurred over $25,000 in defense costs for the lawsuit and ultimately settled for $110,000.
A male employee of a 150- person consulting firm alleged that his manager engaged in numerous and repeated instances of sexual harassment, creating a hostile work environment. The employee alleged that the continued sexual harassment caused severe emotional distress and mental anguish over a two-year period and forced him to resign. A jury awarded the employee $300,000 for emotional distress and mental anguish, $90,000 in lost income, and the consulting firm’s $150,000 in defense costs.
A 54- employee textile distributor agreed to settle a class action lawsuit brought by African-American employees for $490,000. The class alleged that the distributor paid African Americans less than other employees, and also failed to adequately train and promote them.

A real estate company with 99 employees paid $85,000 in defense costs and $150,000 to settle a lawsuit brought by a female employee. The plaintiff claimed she was harassed and even stalked at certain times throughout a week-long company retreat by an officer of the company. She alleged that she was subjected to numerous and repeated vulgar sexual comments and that management did not do enough to stop or prevent the officer’s behavior.

A salesman of a manufacturing company with 135 employees filed suit against the company for disability discrimination, wrongful termination, and intentional infliction of emotional distress. The lawsuit alleged that the employee had been discriminated against for his mild speech impediment and wrongfully terminated, which caused him emotional distress. Before going to court, the company settled the case for $95,000 after incurring $140,000 in defense costs.

An employee of an oil and gas company with 25 employees filed a complaint with the EEOC and then filed a lawsuit alleging wrongful termination after he was dismissed for returning to work with nose and tongue piercings. The employee maintained that his performance evaluations had been positive and that he had recently been promoted to a supervisory role. The company incurred just over $40,000 in defense costs and paid the employee $75,000 to settle the case.

An employee of a 180- employee technology service company filed a lawsuit alleging that she had been bullied, was the subject of defamatory comments, and was forced to work in a hostile work environment because of her sexual orientation. The lawsuit also alleged that the employee’s supervisor removed her from the company’s top accounts and placed her on smaller accounts, negatively impacting her annual salary and bonus potential. Prior to trial, the company settled for $345,000 after incurring $60,000 in defense costs.

A former executive of a 270- employee business services company sued the company for breach of employment contract alleging that the company owed him $760,000 for lost wages, bonus, and other benefits. The company incurred over $32,000 in defense costs.

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Employment Practices Liability Insurance

Employment Practices Liability Insurance offered Nationwide! We offer Professionals, Transactional, Title Agencies, Accountants, Lawyers, Architects, Engineers, and Litigation Containment.
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