Employment Practices Liability Insurance (EPLI)

03Cost and available options

What can affect your EPLI (Employment Practices Liability) cost and options

Insurers use these details to decide whether they can offer coverage, what options may be available, and what those options may cost. Each insurer weighs them differently based on the state, policy, and your business as a whole.

05Coverage examples

Example claim scenarios

A few situations that show how this coverage can respond when something goes wrong. These are examples only — not actual claims, and not a guarantee of any outcome.

• Example scenario

  Wrongful termination after a performance dispute

  A former employee alleges that a termination following a performance improvement process was discriminatory. The employee claims the documented performance issues were pretextual and that the true reason for the separation was the employee's age or protected status. The business disputes the allegation. The former employee files a charge with a state agency and then a civil lawsuit. EPLI can respond to the defense costs associated with the administrative proceeding and the lawsuit. It can also respond to a resulting settlement or judgment, subject to the policy's terms, conditions, and exclusions. The coverage does not resolve whether the allegation has merit. It provides the financial resource to respond to the claim through the legal process.

• Example scenario

  Harassment allegation involving a supervisory relationship

  An employee reports that a supervisor has engaged in a pattern of conduct the employee characterizes as sexual harassment. The complaint is followed by a formal EEOC charge and litigation. The defense of the charge generates substantial legal expense before the case is resolved. This is true even if the business's investigation concludes the conduct did not rise to the legal standard. Defense costs include document preservation, HR records, witness interviews, depositions, and legal representation. EPLI can respond to those defense costs and to any resulting resolution, subject to the policy's terms, conditions, and exclusions. The coverage applies to the defense of the claim as filed. It is not limited to outcomes where the employer is found to have acted wrongfully.

• Example scenario

  Retaliation claim following an internal complaint

  An employee reports a workplace safety concern to management. The employee is subsequently passed over for a promotion. The employee files a retaliation claim alleging that the adverse employment action was in response to the protected activity. The matter moves into litigation. Retaliation is a distinct employment practices allegation from the underlying complaint that triggered it. It is among the more commonly filed EPLI claims. EPLI can respond to the defense and resolution of a covered retaliation claim, subject to the policy's terms, conditions, and exclusions. These typically include provisions addressing what counts as a covered wrongful act and when the policy's retroactive date applies.

The claim scenarios above are illustrative examples only. They do not represent actual clients, actual claims, or guaranteed coverage outcomes. Coverage for any specific situation depends on the policy terms, conditions, exclusions, and the facts of the claim.

08Keep reading

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