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The Importance of EPL Insurance

What is EPL Insurance?

Employment Practices Liability Insurance will cover you for the costs stemming from claims associated with the employment process.

EPL Insurance coverage reimburses your business for the cost of fighting employee allegations in court, regardless of the outcome, as well as judgments or settlements that result.

 Why Do I Need EPL Insurance?

As an employer you are at risk for litigation from employees alleging discrimination, sexual harassment, retaliation and wrongful termination claims against you. EPL Insurance protects you and your business from EPL-related claims.

Common employment practices liability claims

EPL claims can happen when potential, current or former employees believe they have been mistreated. Common claims include:

  • Sexual harassment
  • Invasion of privacy
  • Wrongful termination
  • Wage and hour law
  • Discrimination (age, gender, race, religion, etc.)
  • Breach of contract

Who Needs EPL Insurance?

Simply put, any company with employees is at risk for an employment practices claim.


Though it is not legally required for companies to have EPL Insurance, it is always a good idea to protect your business, as defending an EPL claim can be detrimental to the budgets of small- and medium-sized businesses.

When looking into EPL Insurance and the amount of coverage you need, consider the size of your business, its culture and your employee turnover rate. Also evaluate any employment policies you have in place.

For more information about EPL Insurance, contact Lockton Professional.