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Employment Practices Liability Insurance (EPLI)

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) helps protect companies from claims made by current, former or prospective employees, alleging wrongful termination, failure to promote, negligent evaluation, discrimination, retaliation, sexual harassment and more. In an increasingly litigious world, even companies that are diligent in addressing employee complaints and fostering a healthy work environment can find themselves in a dispute over some of these issues. EPLI can help protect businesses from the costs of defending a lawsuit in court, as well as the costs of judgments and settlements.

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Why is Employment Practices Liability Insurance important?

Once viewed as a discretionary coverage, Employment Practices Liability Insurance is now widely seen as essential for businesses resilience, and for good reason:

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Discrimination claims are up significantly since 2020.1
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Settlements to workers in class action lawsuits against employers reached nearly $2 billion in 2022.2
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Approximately 70% of all businesses have been involved in employment litigation over the past five years.3
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Employees win nearly 60% of retaliation and wrongful termination cases in court.4

These are just a few examples of how employee claims can affect a business of any size and in any industry, potentially damaging its financial standing and reputation. Litigation can be prolonged, costly, and emotionally charged with hefty attorneys’ fees and potential "sizeable jury verdicts" awards. Even if a company is exonerated in court, a company’s brand and bottom line can be hurt in a lasting manner.

Why choose Zurich for EPL Insurance?

Our flexible and customizable coverage has been developed with deep knowledge of employment laws, as well as current and evolving exposures, to help businesses manage the risks of employee-related litigation. Zurich’s EPLI policy can help address claims related to:

  • Harassment, including sexual harassment, from senior managers, supervisors, co-workers or even non-employees
  • Discrimination, which includes unfair treatment based on religion, age, ethnicity, gender, disability, skin color, sexual orientation or race
  • Wrongful termination
  • Retaliation, including retaliation against whistleblowers reporting workplace violations
  • Breach of an employment contract
  • Pay equity disputes
  • Negligent evaluation
  • Failure to hire or promote
  • Wrongful discipline
  • Deprivation of a career opportunity

We can offer broad employment practices liability coverage for companies, their executives and employees for discrimination lawsuits and other allegations of employment-related violations. Our EPLI coverage includes:

  • Broad definition of “employee”
  • Third-party coverage available
  • Broad definition of Employment Practices Wrongful Acts
  • Worldwide territory coverage (to the extend legally permissible)
  • Additional enhancements available via endorsement
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Legal guidance and risk services and for employers

Reducing potential impacts of employee claims should start before a claim is made, so in addition to benefitting from our insurance coverages, EPLI customers can take advantage of risk services that may help them better manage their workforce and help reduce employment-related exposures.

Jackson Lewis EPLI Prevent & Protect Portal and hotline

This portal provides Zurich customers with a comprehensive package of risk management products and services designed by the attorneys at Jackson Lewis. The portal gives users access to:

  • Up-to-date information on workplace law topics
  • Interactive executive, manager, and employee training (users can also set up interactive or live training through the portal)
  • A hotline where the call center can help answer employment-related questions
  • Free sample of human resource policies including employee handbook templates
  • Labor and employment library of on-demand podcasts and webinars
  • Employment practices checklists to assist in evaluating the approach to important employment issues

Portal access is free, with some services and capabilities available at additional cost.


Zurich Resilience Solutions Workforce Services

ZRS’ Workforce Sustainability services includes Diversity, Equity & Inclusion (DEI) consulting, trainings, and other resources to help companies protect their workers, strengthen workplace culture and drive performance. Find out more.

EPL customer solutions:

  • DEI Health Check:
    • Guided assessment of your companies’ policies and procedures related to human resource life cycle, products and services, supplier, and external stakeholders
    • Understand high-level organizational maturity and risk for DEI action planning (e.g., recruiting, retention)
    • Customized summary report to evaluate for self-monitoring toward future success with DEI initiatives
  • Employee Hotline & Misconduct Reporting Service

Download our whitepaper about Integrating Diversity and Inclusion Throughout your Business: A Risk Management game changer

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Questions about risk management services and insights for EPLI customers?

Submit your question

FAQs

  • What is the difference between EPLI insurance and D&O insurance?

    Directors & Officers (D&O) Liability Insurance helps protect the directors, officers, and board members of a company from claims made against them by customers, clients, investors, and other parties outside of the company. EPLI coverage helps protect a company from claims made by past, present, or prospective employees, including third parties, relating to violations of employment practices. 

  • What is the difference between EPLI and commercial general liability (CGL) insurance?

    CGL usually covers business risks such as bodily injury and property damage liability, personal and advertising injury, and medical payments. It typically excludes discrimination, harassment and other workplace-based claims made by employees.

News and Insights

  1. Hood, David. “Lawsuits Challenge Corporate Diversity Pledges After Floyd.” Bloomberg Law. 7 April 2023.

  2. Bennett, Jennifer, et al. “Workplace Class Settlement Values, Certifications Soared in 2022.” Bloomberg Law. 6 January 2023.

  3. Zipdo. “Essential Employee Lawsuit Statistics In 2023.” 9 June 2023.

  4. Ibid.