Ask an HR Expert: Does my business need EPLI and if so, what does this cover?

Does my business need EPLI?

Hello, my name is Katie Stewart with Tandem HR. Thank you for joining Ask An HR Expert where we answer your HR questions.  Today’s question is, “Does my business need EPLI and if so, what does it cover?”


I’m going to answer the second question first. What does EPLI cover?

EPLI is Employment Practices Liability Insurance. EPLI typically covers wrongful employment acts. This can include discrimination, harassment, sexual harassment, retaliation, and claims of wrongful termination in general.

With high profile cases and the #MeToo movement spreading across the country, we have seen a large increase in claims of harassment, discrimination, and sexual harassment across the board  with our  clients.

Now, does my business need EPLI?

Absolutely! The reason is this insurance covers the cost an employer would incur should they have a claim against them. According to the Equal Employment Opportunity Commission, the average cost to defend a claim is around $125,000. If a claim is taken to a jury trial, the average payment or settlement is around $200,000. Therefore, this coverage will protect your business as well as individuals that may be named in this claim like supervisors and managers. The insurance is very beneficial and cost-effective.

If you’d like more information about EPLI, how Tandem HR can help you obtain this insurance, or the benefits of partnering with a PEO for this insurance, check out our blog post – “What is EPLI and does my business need it?

Thank you for joining us today.


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