Nadler Insurance

Employment Practices Liability Insurance (EPLI)

Protect your business from claims of wrongful termination, discrimination, harassment, and other employment-related issues. Essential coverage for any business with employees.

What EPLI Covers

Wrongful Termination

Covers claims that an employee was fired illegally — for discriminatory reasons, retaliation, or violation of employment contracts.

Discrimination Claims

Covers claims of discrimination based on race, gender, age, religion, disability, pregnancy, and other protected characteristics.

Sexual Harassment

Covers claims of sexual harassment, hostile work environment, and related misconduct. A major exposure in today's workplace.

Retaliation

Covers claims that an employee was punished for protected activity — reporting discrimination, filing a complaint, or whistleblowing.

Wage & Hour (Where Available)

Some policies cover wage and hour claims — overtime violations, misclassification, and meal/break issues. Important in California.

Third-Party Claims

Some policies extend coverage to claims from non-employees — customers, vendors, or contractors alleging discrimination or harassment.

Why EPLI Matters in California

  • California is an employee-friendly state with strong protections and active enforcement.
  • The FEHA (Fair Employment and Housing Act) provides broader protections than federal law.
  • Wage and hour claims are common in California due to complex overtime and meal/break requirements.
  • Jury awards tend to be higher in California compared to many other states.

Frequently Asked Questions

What is EPLI insurance?
Employment Practices Liability Insurance protects employers against claims by employees alleging wrongful employment practices — discrimination, harassment, wrongful termination, retaliation, and related issues. It covers legal defense costs and settlements.
Do small businesses need EPLI?
Yes. Employment lawsuits don't just happen to big companies. Small businesses are actually more vulnerable because they often lack HR expertise and formal policies. Even a single claim can be financially devastating without EPLI coverage.
What's the average cost of an employment lawsuit?
The average employment lawsuit costs $200,000+ to defend, and many settle for six figures. Even frivolous claims cost $75,000+ to fight. EPLI covers these costs so one lawsuit doesn't sink your business.
Does EPLI cover current and former employees?
Yes. EPLI covers claims from current employees, former employees, and job applicants. Many claims come from terminated employees, so this coverage is critical when making difficult personnel decisions.
How can I reduce my EPLI risk?
Maintain clear employment policies, train managers on proper practices, document performance issues, handle complaints promptly, and consult HR/legal when terminating employees. Good practices reduce claims and may lower premiums.

Protect your business from employment claims

Get an EPLI quote and find out how to protect your business and your team.

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