Is a type of business liability insurance that protects employers against lawsuits and claims related to how employees are treated in the workplace.
It helps cover the legal and financial costs of employment-related claims brought by:
EPLI has become increasingly important because employment lawsuits can be expensive even when the employer wins the case.
What EPLI insurance covers
EPLI generally covers claims involving workplace rights, discrimination, and employment practices.
Common covered claims include:
1. Wrongful termination
Claims that an employee was fired illegally or unfairly.
2. Workplace discrimination
Claims involving alleged discrimination based on:
3. Sexual harassment and workplace harassment
Coverage for claims involving:
4. Retaliation claims
If an employee claims they were punished for:
5. Failure to hire or promote
Claims from applicants or employees alleging unfair hiring or promotion practices.
6. Employment-related defamation or privacy violations
Some policies cover claims involving:
7. Legal defense costs
One of the biggest benefits of EPLI is payment for:
Even if the lawsuit is ultimately unsuccessful.
What EPLI usually does NOT cover
Most EPLI policies exclude:
Coverage details vary by insurer.
How much EPLI insurance costs in 2026
EPLI pricing depends heavily on:
Businesses in states like California and New York often pay more because employment laws are stricter.
Typical EPLI costs in 2026
| Business Type | Typical Annual Cost |
| Very small business (1–10 employees) | $800- $2,000 |
| Small business (10–50 employees) | $2,000 -$6,000 |
| Mid-size company | $5,000-$25,000 |
| Large/high-risk employer | $25,000+ |
Businesses most likely to buy EPLI
EPLI is especially common in industries with:
Examples:
Why EPLI matters in 2026
Employment-related lawsuits have become more common and expensive. Even defending a claim can cost tens of thousands of dollars.
Disclaimer: All information provided is for informational purposes only and should not be construed as legal, financial, tax, or professional advice. Current costs, benefits, rates, and program details are based on information available at the time of publication and are subject to change without notice. Actual eligibility, pricing, incentives, and terms may vary and should be independently verified with the appropriate providers, agencies, or professionals before making any decisions or commitments.