The Necessity of EPL Insurance in Today’s Market


Employment practices liability insurance, or EPLI coverage, is an important investment for every employer in today’s market. Below is some information to help you understand how this insurance works and why you need it, as well as tips for choosing the right EPLI policy. 

What is EPLI Coverage?

When employees believe certain rights have been violated by their employer, they may file a claim against the company to recover compensation. Some of the most common claims in this category include breach of employment contract, wrongful termination lawsuits, discrimination claims, sexual harassment claims, wrongful discipline lawsuits, claims related to failure to promote and mismanagement of employee benefit plans. If the employee's lawsuit is successful, you may owe a large settlement. 

EPLI is a specific type of insurance coverage designed to protect a company against these claims from employees. If you purchase this type of coverage and an employee files a lawsuit against your company, EPLI will cover related expenses.

Why Is EPLI Necessary?

EPLI is not required by law. However, for most businesses, this type of insurance is a valuable investment. The number of lawsuits being filed by employees has increased significantly in recent years. Although most of these lawsuits are filed against larger corporation, companies of any size can become a target of these claims. These lawsuits can be very costly if your company does not have EPLI coverage. In some cases, the losses may even be enough to force your company to close its doors. 

Purchasing EPLI Coverage

If you think your business may benefit from EPLI coverage, it is important to choose the right policy. Different EPLI policies include different coverage limits. EPLI policies usually have a limit imposed on single claims, as well as an aggregate limit. The higher these limits, the more coverage the policy provides for your company. However, higher policy limits also require you to pay a higher premium in most cases. Thus, you will need to weigh your budgetary concerns against your need for coverage to find the most appropriate policy limits. 

About Axis Insurance

At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.

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