Employment Practices Liability (EPLI)

EPLI is designed to respond when a current employee, former employee, or job applicant alleges a wrongful employment practice — for example wrongful termination, discrimination, harassment, retaliation, or failure to hire or promote. Depending on the policy, it can help pay for legal defense costs and for settlements or judgments, up to the policy limits.

Usually not in full. Many policies exclude wage-and-hour claims (such as unpaid overtime or meal and rest break disputes) or offer only a limited defense-cost sublimit. Ask us how a specific policy handles this, since it matters for California employers.

Any business with employees can face an employment-related claim, even with good practices in place. California employment law is detailed and employee-protective, so small and mid-sized California employers often look at EPLI alongside their general liability and workers’ compensation.

Generally, general liability and business owners policies are not designed for employment practices claims. Some carriers offer EPLI as an endorsement to a BOP, while others write it as a separate policy. We can review what you have now.

Options can include third-party coverage (claims of harassment or discrimination brought by customers or vendors) and a wage-and-hour defense sublimit. Availability, limits, retentions, and terms vary by carrier and policy.

Number of employees (full-time, part-time, seasonal), locations, any prior employment-related claims or complaints, and whether you have an employee handbook or written HR policies are helpful to have ready.