EPL Coverage

Protection Against Employment Claims

Employment claims like alleged harassment, discrimination, and wrongful termination can threaten the reputation of your business. With our Employment Practices Liability (EPL) coverage, you’ll get liability and defense for claims that allege unlawful employment practices brought by full-time, part-time and temporary employees, volunteers, independent contractors, and applicants. It also includes punitive damages (where insurable by law), as well as Full Prior Acts and Optional Third Party Liability.

Who’s it for?

Business owners who want the means to protect and defend against employment claims that have the potential to damage their company’s reputation.


Why would you use it?*

In 2018 alone, the Equal Employment Opportunity Commission (EEOC) fielded over 200,000 inquiries regarding potential discrimination claims and more than 7,600 sexual harassment charges. In addition, the statistics below show how costly an employment claim or lawsuit can be in terms of time and money:

• The average cost of settling out of court for an employment claim is $75,000
• The average jury award for an employment-related case is $217,000
• The average duration of an employment claim spans more than 300 days
• Average court costs and legal fees when settled out of court: $10,000 to $50,000
• Average court costs and legal fees when the case is dismissed: $10,000 to $15,000
• Average court costs and legal fees when the case goes to trial: $150,000 to $200,000


How do you get it?

Because we know the cost of a lawsuit—win or lose—can really impact your business, we include EPL coverage as part of your policy. We also provide additional resources, including employee handbooks, employment applications, training modules, best practices, and a toll-free helpline, to help make sure you’re prepared and protected at all times.


*Sources: AM Trust Financial, https://amtrustfinancial.com/blog/insurance-products/top-trends-employment-practices-liability-claims and Post Insurance Services Inc., https://www.postinsurance.com/2020/06/09/even-good-employers-get-sued-the-cost-of-not-having-epli-insurance/