Employment practices liability insurance (EPLI)

For small businesses with employees, EPLI may offer protection in the event of work-related litigation.
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What is employment practices liability insurance?

Employment practices liability insurance (EPLI) may help protect your business if you get sued over employment issues. It may cover things like:

  • Compensatory damages 
  • Legal defense costs 
  • Punitive damages

Employment practices liability insurance may help protect against:

Wrongful termination

Wrongful termination happens when a boss lets someone go in a way that breaks the law or goes against their job contract.

Discrimination

Workplace discrimination happens when a boss treats an employee or job applicant unfairly because of race, color, religion, gender, where they come from, age, disability or genetic information.

Sexual harassment and retaliation

Sexual harassment at work is any unwanted behavior of a sexual nature that makes the workplace uncomfortable or hostile.

If someone reports harassment or joins an investigation, retaliation happens when their boss or co-workers punish them, even if the complaint is unfounded and was made in good faith.

Professional HR support – a resource for small businesses

As part of EPLI, you get free online access to human resources support and consultation services to help small business owners, like you, avoid expensive employment claims.

For example, if you're considering letting an employee go for performance issues, you can contact an HR expert by phone or email for advice before making your decision.

This service offers:

  • HR support via phone or email 
  • More than 500 HR management forms and state-specific handbooks 
  • Guidance on hiring, discipline or termination, performance reviews, and more 
  • Online training for anti-harassment, discrimination and more
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How much is EPLI?

The cost of EPLI insurance is determined by the number of people you employ. Contact your State Farm agent for assistance.

Why consider employment practices liability insurance?

Employees can file complaints against their employers for issues like sexual harassment, discrimination and wrongful termination. These claims can add up to hundreds of thousands of dollars, and many general liability policies won’t cover them.

Defending your business against these claims can take time and money. Employment practices liability insurance may help protect your business from major losses related to these employment issues.

Coverage in action

If an employee believes they’ve been wrongfully terminated, they may bring a costly lawsuit against your company. By carrying EPLI coverage, you can help protect your business, including covering legal defense costs, should claims arise.

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Should you consider a business owners policy (BOP)

Business owners policy may help protect your organization from various covered claims, including injury, property damage and injuries done to others resulting from your business’ operations.

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Frequently asked questions about employment practices liability insurance

The cost of EPLI insurance is largely determined by the number of people you employ and the class of business. Reach out to your State Farm agent for assistance.

EPLI extends coverage to all owners should they be individually named in a lawsuit. However, the policy doesn’t extend coverage if an owner were to file a claim or lawsuit against the business or another owner.

A: General liability insurance and Employment Practices Liability Insurance (EPLI) offer distinct protections. General liability covers physical (slip, trip and fall accidents) and property damage claims. EPLI provides coverage for allegations of employment-related claims like discrimination, harassment, sexual harassment or wrongful termination.

EPLI is a stand-alone policy. It can’t be added to an existing business insurance policy and must be purchased separately

EPLI and workers’ compensation offer distinct protections. EPLI covers employment-related claims like discrimination, harassment, sexual harassment or wrongful termination. Workers’ compensation provides coverages, such as medical expenses, lost wages, and rehabilitation for employees injured or ill on the job.

Protect your place from electrical fires

State Farm and Ting could help you prevent electrical fires before they happen – for free.

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Additional coverage options

Commercial auto insurance

Get coverage for your commercial vehicles – cars, trucks, vans and other vehicles used for business.

Workers’ compensation

Helps protect your team against work-related injuries or illness. Requirements for workers’ comp vary by state.

Commercial liability umbrella policy (CLUP)

Gives you an added measure of protection when your covered liability losses exceed your policy limits.

Get a local agent who gets you

There’s a State Farm agent nearby ready to offer personalized service to fit your specific needs.

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Simple Insights®

Looking for ways to help keep your small business running smoothly? You’ve come to the right place. Articles from Simple Insights draw on over 100 years of State Farm knowledge.

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Prices are based on rating plans that may vary by state. Coverage options are selected by the customer, and availability and eligibility may vary.

This is only a general description of coverages of the available types of business insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all business and vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Contact a State Farm agent for more information and a customized quote.

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