Employee Practices Liability Insurance, otherwise known as EPLI, is a specific type of insurance intended to protect businesses from employment-related lawsuits. Historically, this type of coverage has been relegated to large corporations, but today it has become a necessary investment for businesses of all sizes.

Over the last 20 years, employee lawsuits have risen roughly 400%, with wrongful termination suits up more than 260%.

According to industry experts, retaliation and sexual harassment claims, gig worker classification, the gender pay gap and medical marijuana usage were among the top trending employment practices litigation cases in 2020. These should come as no surprise as there has been a litany of headlines in the past few years relating to these exact topics.

EPLI policies can be offered as a stand-alone insurance policy or can be combined with existing coverage as an endorsement. Violating an employee – or subcontractor’s – rights can have extreme consequences for a growing organization. Previous, current or even prospective employees can make allegations that could lead to a potentially devastating lawsuit.

It’s imperative for employers to be proactive in developing their organization’s employee policies and procedures. Consider the following to reduce the risk of exposure to potential EPLI claims.


  • Review potential loss exposures
  • Create and implement effective screening and hiring programs
  • Develop an employee handbook
  • Create a detailed job description for each role
  • Institute a zero-tolerance policy
  • Post company policies in the workplace
  • Document all employee complaints and what your company did to resolve those issues reduce your risk:

According to AmtrustFinancial, “Employment Practices Liability (EPLI) Claims Trends, Stats & Examples”

Stay tuned other blog posts in the coming weeks on EPLI and all that it entails.

Ensuring proper coverage is in place should be a top priority. As your workforce becomes more diverse, be sure to consult with your advisors frequently to review and update your policies, discuss potential claims scenarios, and build out proper training for employees at all levels as an additional safeguard.


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Jeff Cotto

Vice President | Business Insurance

Jeff is a Vice President in Business Insurance at RogersGray. Specializing in condominium insurance, coastal property insurance, insurance for contractors and non-profit insurance, Jeff has over 14 years of consultative insurance experience. Jeff can be reached directly at 508-760-4621, via LinkedIn or by email.