Employment Practices Liability Insurance (EPLI) vs. General Liability Insurance
Employment practices liability insurance (EPLI) covers claims from employees alleging wrongful employment actions like discrimination or wrongful termination, a category of risk that general liability insurance doesn't address at all.
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General Liability Insurance
Covers third-party bodily injury and property damage claims, but excludes claims related to employment practices and workplace decisions entirely.
- Addresses common physical liability exposures for most businesses
- Widely required baseline coverage by landlords and many contracts
- Provides no protection at all for claims alleging discrimination, harassment, wrongful termination, or other employment-related issues
Employment Practices Liability Insurance (EPLI)
Covers legal costs and settlements from employee claims alleging wrongful employment actions, such as discrimination, harassment, or wrongful termination.
- Covers legal defense and settlement costs specifically for employment-related claims
- Increasingly relevant given how common and costly employment-related claims can be, regardless of a claim's ultimate merit
- Added cost on top of general liability coverage
- Pricing and available limits vary based on employee count and specific industry risk
Which one makes sense for you?
Any business with employees carries some level of employment practices risk, and general liability insurance doesn't address it at all, making EPLI worth specifically evaluating as businesses grow their headcount, since claim frequency and defense costs in this area can be significant regardless of a claim's ultimate outcome.
Key cost factors.
- Number of employees and overall employment practices risk exposure
- Whether formal HR policies and documentation practices are already in place
- Industry-specific patterns in employment-related claims
- Existing legal budget or reserves available to defend against an employment claim without coverage
Before you decide.
- How many employees does my business currently have, and how does that affect pricing?
- What formal HR policies and documentation practices are already in place to help reduce this risk?
- Could my business absorb the legal defense costs of an employment claim without this coverage?
Frequently asked questions.
Does having strong HR policies eliminate the need for EPLI?
Good HR policies and documentation can reduce risk and may even help with underwriting or pricing, but they don't eliminate the possibility of a claim being filed, or the legal defense costs involved, which is exactly the financial risk EPLI is designed to address.
All figures on this page are illustrative examples for general education, not quotes, appraisals, or guarantees of actual pricing. Actual costs vary by provider, location, project scope, and market conditions — always get a specific quote before making a purchasing decision.
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