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:
- 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)
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
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.