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Business Insurance

What Is Employment Practices Liability Insurance (EPLI)?

Truscott Insurance Solutions
July 31, 2026
4 min read

Employment practices liability insurance, or EPLI, covers claims brought by employees against your business, such as discrimination, harassment, or wrongful termination. As soon as you have staff, this exposure exists.

What it covers

EPLI generally pays for legal defense and settlements when a current, former, or prospective employee alleges a workplace wrong. These claims can be costly to defend even when they are unfounded, which is where the coverage earns its place.

Who should consider it

Any business with employees faces employment-related risk, and it grows with headcount. Small businesses are not immune, and a single claim can be significant relative to their size.

What Truscott recommends

If you employ people, this is an exposure worth understanding rather than discovering during a dispute. Explore business insurance or start a quote.

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