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EPLI stands for Employment Practices Liability Insurance. It provides coverage for businesses when a claim is made by an employee alleging an employment-related issue. EPLI can be used to help cover legal fees, defense costs, or settlements associated with these claims. It is designed to protect a business and employees in management positions. Some of the issues could include:

  • Discrimination – Claims based on race, gender, age, disability, or other forms of discrimination.
  • Harassment – Claims related to sexual harassment or other forms of workplace harassment.
  • Wrongful Termination Allegations of unfair termination.
  • Retaliation – It involves a claim that a company retaliated against a worker for exercising their legal rights.
  • Defamation – Accusations of making false statements that have harmed an employee’s reputation.

Why Is EPLI Important?

There are several reasons why a business should consider obtaining Employment Practices Liability Insurance coverage (EPLI):

  • Risk Management – EPLI can be used as a risk management tool by helping businesses identify potential liabilities. It can encourage a company to enforce policies that can reduce the chances of a lawsuit being filed against the company.
  • Financial Stability – You can use EPLI to protect the financial standing of your business since this insurance covers legal costs and any potential settlements. It prevents a lawsuit from causing critical financial strain on a business.
  • Legal Compliance – EPLI can serve as an encouraging factor for businesses to establish and maintain compliant practices, including implementing anti-discrimination and anti-harassment policies.
  • Lawsuit Protection – Businesses that need financial protection against lawsuits should obtain EPLI since it covers legal expenses, settlements, and judgments.
  • Employee Relations – This insurance can serve as a reminder for companies to ensure their employees are happy and are treated fairly in the workplace.
  • Attracting and Retaining Talent – A business could seem more favorable to potential employees and current employees. It shows that the company is committed to fair practices.

What Factors Determine the Costs of EPLI?

Several factors can influence the price of Employment Practices Liability and Insurance policies. Some of the critical factors include:

  • Business Size – The number of workers that you have in your business can impact the cost of your EPLI premium. Larger companies will likely face a higher insurance cost.
  • Business Type – Some industries have higher risks of employment-related claims being filed. Some insurance companies take this into account when determining a premium cost.
  • History of Claims – If a business has a history of employment-related claims and lawsuits, it could see a higher premium. Businesses that don’t have a history of high claims may receive a lower premium from an insurance company.
  • Employee Turnover – High turnover rates can be associated with increased risk since frequent personnel changes may lead to higher chances of employment-related issues.
  • Employee Training – Businesses that have programs in place that train employees on how to prevent discrimination and harassment may be viewed in a favorable light by insurers.

How Can Businesses Get a Discount on EPLI?


A business can be eligible for a discount on EPLI if it implements certain strategies such as:

  • Come up with training programs for employees and managers on how to address discrimination, harassment, and other employment-related issues.
  • Businesses with no previous employment-related claims can be beneficial when an insurance company is determining premiums for EPLI.
  • Consult with an insurance broker or agent who specializes in EPLI. They may be able to help you select the most cost-effective option.
  • Maintain a strong financial position so that insurers can feel confident in the business’s ability to handle legal expenses.

How Can Biscayne Risk & Insurance Group Help Your Business?


Employment Practices Liability Insurance (EPLI) has a critical role in protecting a business from the risk of employment-related claims. Workplace settings and dynamics are always changing, requiring businesses to need comprehensive protection.

Biscayne Risk can help your business with tailored EPLI coverage solutions. We’ll perform an EPLI Assessment that allows you to better understand all of the available policies as we guide you in determining which offers the best protection for your company.

We also offer risk management insurance that can help your business identify and address any risks before a loss occurs. You can receive a quote from us and learn more about all of our insurance solutions from one of our experienced team members.

We look forward to working with you!

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Fill out the contact form below or call 561.571.1001 to speak to a member of our team.
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