Employment Practices Liability Insurance (EPLI)
Protect your business from employee lawsuits. EPLI covers the cost of defending and settling employment-related claims including discrimination, harassment, wrongful termination, and retaliation.
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What EPLI Covers
EPLI covers a wide range of employment-related claims. Even well-managed businesses face these claims — and the cost of defending them is significant regardless of whether the claim has merit.
Wrongful Termination
Claims by former employees alleging they were terminated for illegal reasons, including discrimination, retaliation, or breach of employment contract.
Discrimination
Claims alleging discrimination based on race, color, sex, age, religion, national origin, disability, sexual orientation, or other protected characteristics.
Sexual Harassment
Claims alleging a hostile work environment or quid pro quo sexual harassment by owners, supervisors, or co-workers.
Retaliation
Claims that an employer took adverse action against an employee for reporting harassment, discrimination, or safety violations ('whistleblower' claims).
Failure to Promote
Claims that a qualified employee was passed over for advancement for discriminatory reasons.
Third-Party Claims
Some EPLI policies cover claims by customers or clients who allege harassment or discrimination by your employees.
Why Contractors Are Exposed to Employment Practices Claims
The construction industry has historically high rates of employment claims. Workforces are often large, male-dominated, and seasonal. Layoffs at the end of a project are routine. Worker classification (employee vs. independent contractor) is frequently contested. Language and cultural barriers between supervisors and workers can create misunderstandings that lead to harassment or discrimination claims.
California is particularly challenging — the state has among the most employee-protective laws in the country, and the California Labor Code and Fair Employment and Housing Act (FEHA) give employees strong remedies and attorneys' fee shifting in employment disputes. Defending a single EPLI claim in California can easily cost $50,000 or more in legal fees alone, before any settlement or judgment.
EPLI provides not just financial protection but also access to HR resources, employment practice guidelines, and proactive risk management tools that help you avoid claims in the first place.
EPLI — Frequently Asked Questions
Protect Your Business from Employment Claims
EPLI coverage for contractors of all sizes. Get a competitive quote from Altamira today.