---
title: Employment Practices Liability Insurance (EPLI)
description: Why Every Business Needs Employment Practices Liability Insurance (EPLI)
---

[Ensure Your Business's Future!](https://forwardcoverage.com/blog)

# [Employment Practices Liability Insurance (EPLI)](https://forwardcoverage.com/blog/epli)

 Written by [Michael Shield](https://forwardcoverage.com/blog/author/michael-shield) | Nov 11, 2025 4:16:32 PM

Running a business means managing risk—from property damage to customer liability. But one area many business owners overlook is protection against **employee-related claims**. That’s where **Employment Practices Liability Insurance (EPLI)** comes in. 

 

#### What Is EPLI? EPLI stands for **Employment Practices Liability Insurance**. It covers claims made by employees (or former employees) alleging: 

- **Discrimination** (age, race, disability, etc.) 
- **Wrongful termination** 
- **Failure to promote** 
- **Retaliation** 
- **Mismanagement of employee benefits** 

These claims can be costly—even if they’re unfounded. 

 

#### Why EPLI Is Essential 

- **Employee lawsuits are increasing**, even among small businesses. 

- **Legal defense costs can be substantial**, regardless of the outcome. 

- **General Liability and Workers Compensation policies do NOT cover these types of claims.** 

Without EPLI, your business could face serious financial exposure. 

 

#### Real-Life EPLI Claim Examples Here are a few real-world cases that highlight the importance of EPLI: 

 

1. **Wrongful Termination at a Manufacturing Firm**  
   An employee was terminated after reporting safety violations. The company faced a retaliation claim and settled for **$75,000**, plus legal fees ([Case details](https://www.tong-law.com/what-happens-when-an-employer-discriminates-based-on-jury-duty-service/))
2. **Disability Discrimination at a Retail Store**   
   A retail employee claimed they were denied reasonable accommodations for a disability. The case resulted in a **$40,000 settlement** and additional defense costs ([Sam’s Club case](https://www.nwahomepage.com/news/walmart-news/sams-club-to-pay-60k-in-disability-discrimination-lawsuit-settlement/)). 
3. **Failure to Promote at a Tech Company**  
   An employee alleged they were repeatedly passed over for promotion due to age. The company settled for **$60,000**, avoiding a lengthy trial ([HP $18M age bias settlement](https://topclassactions.com/lawsuit-settlements/employment-labor/discrimination/hp-hpe-settle-class-action-over-alleged-mass-layoffs-due-to-age-bias-for-18m/)).
4. **Tesla Racial Harassment Case**  
   A former Tesla employee was awarded **$137 million** by a jury for racial harassment. Although the amount was later reduced to **$3.2 million**, the case highlights how severe workplace conditions can lead to massive verdicts ([Read more](https://www.nytimes.com/topic/company/tesla-motors-inc)).
5. **PPD Development Retaliation & Disability Discrimination**   
   A Massachusetts jury awarded **$24 million** to a woman who sued her employer for retaliation and discrimination due to her social anxiety disorder ([Full story](https://www.insurancejournal.com/news/east/2023/11/14/747986.htm)).
6. **National Raisin Corp. EEOC Settlement**   
   The EEOC settled a case involving retaliation and discrimination against farmworkers for **$2 million**, after persistent complaints were ignored by management ([EEOC press release](https://www.eeoc.gov/newsroom/sunshine-raisin-national-raisin-pay-2-million-eeoc-sexual-harassment-lawsuit)).
7. **Wrongful Termination for Jury Duty**   
   An employee was fired for taking time off to serve on a jury—an act protected by law. The company settled for **$80,000**, plus **$25,000 in legal fees** ([Learn more](https://www.tong-law.com/what-happens-when-an-employer-discriminates-based-on-jury-duty-service/)). 
8. **Religious Discrimination at a Retail Store**   
   An employee was denied time off for religious observance and excluded from team events. The case settled for **$75,000**, with **$25,000 in defense costs** ([EEOC case](https://www.eeoc.gov/newsroom/hanks-furniture-pay-110000-eeoc-religious-discrimination-lawsuit)). 

 

#### What EPLI Covers

- Attorney fees and court costs 
- Settlements and judgments
- Certain administrative costs related to claims 

 

#### Who Should Have EPLI? If you have employees—even just one—you should consider EPLI. Claims can come from current staff, former employees, or even job applicants. 

 

#### Final Thoughts Employment-related claims can happen to any business. EPLI is a smart, proactive way to protect your company’s finances and reputation. 

We **urgently recommend** securing an EPLI policy. To get started, simply **reply to this post or email us at** [EPLI@forwardcoverage.com](mailto:EPLI@forwardcoverage.com). 

[View full post](https://forwardcoverage.com/blog/epli)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Michael Shield"
  },
  "dateModified" : "2025-11-11T16:16:32.325Z",
  "datePublished" : "2025-11-11T16:16:32Z",
  "headline" : "Employment Practices Liability Insurance (EPLI)",
  "image" : {
    "@type" : "ImageObject",
    "height" : 1024,
    "url" : "https://22718903.fs1.hubspotusercontent-na1.net/hubfs/22718903/Header%20for%20an%20EPLI%20awareness%20blog_.png",
    "width" : 1536
  },
  "mainEntityOfPage" : "https://forwardcoverage.com/blog/epli",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60.0,
      "url" : "https://cdn2.hubspot.net/hubfs/22718903/Asset%209@4x-1.png",
      "width" : 267.74567
    },
    "name" : "Forward Coverage - Insurance Blog"
  }
}
```