Employment Practices Liability Insurance (EPLI)

• What Does Employment Practices Liability Insurance Cover?
• Does My Business Need EPLI Insurance?
• What’s the Difference Between EPLI and General Liability Insurance?
• Why Work With a Specialist EPLI Broker?
• Frequently Asked Questions About EPLI Insurance
• Schedule a consultation

What Does Employment Practices Liability Insurance Cover?

A comprehensive EPLI policy through Vanasek Insurance may include:

Legal defense costs — covered even if the claim is completely groundless or frivolous

Settlements, judgments, and court awards — protection when cases go the distance

Coverage for your entire organization — including leadership, managers, HR staff, and the business entity itself

Claims from employees, contractors, and applicants — not just current W-2 staff

Third-party liability coverage — for situations where vendors, customers, or other outside parties sue over an employee’s conduct

Does My Business Need EPLI Insurance?

If you have employees — even just one — you have exposure.

Most standard general liability policies explicitly exclude employment-related claims. That gap is where businesses get hurt. EPLI closes it.

We recommend EPLI coverage for:

• Law firms and professional service firms navigating high-stakes personnel decisions
• Cities, counties, and special districts with complex HR obligations and public accountability
• Nonprofits managing volunteers, hybrid workforces, and limited legal budgets
• Private businesses with growing teams where rapid hiring increases the risk of missteps

If you’ve hired, fired, promoted, demoted, or restructured in the past 24 months, it’s worth reviewing whether your current coverage would respond to an employment claim.

What’s the Difference Between EPLI and General Liability Insurance?

General liability (GL) insurance covers bodily injury, property damage, and certain personal injury claims. It does not cover employment-related disputes like wrongful termination, harassment, or discrimination. These claims require a separate EPLI policy. Many business owners discover this gap only after a claim has been filed — at which point it’s too late to add coverage retroactively.

Why Work With a Specialist EPLI Broker?

At Vanasek Insurance, we don’t just quote policies and move on. We take a consultative approach to employment practices risk:

We identify exposure before it becomes a claim. We review your current HR workflows and hiring practices to flag gaps that could invite litigation.

We access top-rated carriers with flexible terms. Our market relationships allow us to find coverage that fits your budget without sacrificing protection where it matters most.

We structure coverage that aligns with your operations. Whether you’re a 10-person nonprofit or a 500-employee firm, your EPLI policy should reflect how you actually manage people — not a generic template.

Whether you’re hiring aggressively, navigating a difficult termination, or restructuring your team, EPLI helps protect your leadership, your reputation, and your bottom line.

Frequently Asked Questions About EPLI Insurance

Does general liability insurance cover wrongful termination claims? No. Standard GL policies explicitly exclude employment-related claims. EPLI is a separate policy designed specifically to fill that gap.

How much does EPLI insurance cost? Premiums vary based on company size, industry, claims history, and coverage limits. Many small to mid-sized businesses find coverage in the range of $1,500–$5,000 per year — a fraction of the average claim cost.

Is EPLI insurance required by law? It is not legally mandated in most states, but it is strongly recommended for any business with employees. Some contracts, leases, or government agreements may require it.

Can an employee sue my business even if their claim is false? Yes. Anyone can file a lawsuit regardless of merit. EPLI covers your legal defense costs even for claims that are ultimately dismissed or unfounded.

What’s the difference between EPLI and Directors & Officers (D&O) insurance? D&O covers executives and board members for decisions made in their leadership capacity. EPLI specifically covers employment-related claims. Some organizations need both, and they can often be packaged together.

Are independent contractors covered under EPLI? Many EPLI policies can be structured to include claims from contractors and applicants, not just full-time employees. We’ll make sure your policy reflects your actual workforce.

Schedule a Free EPLI Coverage Review:

Not sure if your current coverage would hold up against an employment claim? We’ll find out together.

In a brief, no-pressure consultation, we’ll review your existing policies, identify any gaps in your employment practices coverage, and give you a clear picture of where you stand — at no cost.

Call us or request a free EPLI quote today. We’ll tell you exactly where your current policy leaves you exposed — before a claim does.

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