What are Employment Practices Liability Insurance and How Does it Work?

Employment Practice Liability Insurance (EPLI) is a type of insurance policy designed to protect businesses from claims made by employees. They may make claims regarding their legal rights in the workplace. The policy covers a wide range of employment-related claims, including discrimination, wrongful termination, harassment, retaliation, and other violations of federal or state laws.

Read more

Get right expert advice

Hassle free policy

Speedy Claims

Fast-track your search with instant quotes from prominent insurers

Get ₹5 Crore insurance cover starting at ₹25,000/year+

Step 1/2
Liability from Product or Service
Property damage or Bodily Injury
Medical & Legal Costs Covered

Get ₹5 crores insurance cover starting at ₹25,000+

Liability from Product or Service
Property damage or Bodily Injury
Medical & Legal Costs Covered
secure-icon We don't spam
Get Updates on WhatsApp
View Plans

Get ₹5 Crore insurance cover starting at ₹25,000/year+

Step 2/2
Fast-track your search with instant quotes from prominent insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Employment Practices Liability Insurance

Employment Practices Liability Insurance is a type of insurance policy that protects businesses from lawsuits related to employment practices. It covers a range of claims made by employees, such as discrimination, harassment, wrongful termination, and retaliation. Further, these types of policies are typically purchased as part of a comprehensive business insurance policy or as a standalone policy.

The liability policies are designed to provide businesses with protection against the financial costs associated with employment-related lawsuits. These costs can be significant, as legal fees, settlements, and judgments can add up quickly. Hence, the policy can help mitigate these costs, providing businesses with the financial resources they need to defend themselves against these types of claims.

Employment Practices Liability Insurance Work

The liability policies are typically structured as claims-made policies, which means that they only cover claims that are made during the policy period. It means that businesses need to have an active liability policy at the time the claim is made to receive coverage.

When a claim is made, the policyholders (the business) should notify their insurance company immediately. The insurance company shall assign an adjuster to investigate the claim and determine the validity of the allegations. 

If the claim is found to be valid, the insurance company will provide the policyholder with legal representation. This will cover the costs associated with defending the claim.

Employment Practices Liability Insurance Coverage

The policy provides coverage for a range of employment-related claims, including:

  1. Discrimination

    It encompasses allegations of discrimination based on race, gender, age, religion, handicap, and other protected characteristics.

  2. Harassment

    It covers claims of harassment, including sexual harassment and other forms of harassment based on protected characteristics.

  3. Wrongful termination

    It covers claims of wrongful termination. This includes termination based on protected characteristics or retaliation for reporting discrimination or harassment.

  4. Retaliation

    It covers claims of retaliation against employees who report discrimination or harassment.

  5. Wage and Hour Disputes

    It covers claims related to wages and hour disputes. This includes claims of unpaid overtime, misclassification of employees as exempt and other violations of federal or state wage and hour laws.

  6. Breach of Employment Contract

    It covers claims related to breach of employment contracts. This includes claims concerning wrongful termination, failure to promote, and other violations of employment agreements.

  7. Invasion of Privacy

    It covers claims related to invasion of privacy. This includes claims related to employee monitoring, background checks, and other privacy violations.

    Benefits of Employment Practices Liability Insurance

  8. Protection against Lawsuits

    The policy provides coverage for legal expenses incurred due to lawsuits related to employment practices. It helps protect businesses from the financial risk associated with these lawsuits, which can be significant.

  9. Comprehensive Coverage

    The policy typically covers a wide range of employment-related claims. This includes discrimination, harassment, wrongful termination, and retaliation, among others.

  10. Peace of Mind

    Knowing that a business has employment liability coverage may give an organisation peace of mind. They can rest assured that they are protected against potential legal challenges related to employment practices.

  11. Employees Relations

    By opting for EPLI coverage, businesses can demonstrate their commitment to fair and equitable employment practices. This can help improve employee relations and create a positive work environment.


Employment practice liability policy is an important type of insurance for businesses to provide protection against the financial damages of employment-related claims. By following best practices and investing in insurance coverage, businesses can minimize their risks. They can ensure that they are prepared for any potential claims.

Written By: PolicyBazaar - Updated: 20 March 2024
Comprehensive Liability Insurance Articles
The Public Liability Insurance Act of 1991 comprises 23 sections and one schedule. The act was brought to provide...Read more
31 Mar 2023 by Policybazaar 5629 Views
An employers' liability insurance policy provides coverage to employers from financial loss if a worker...Read more
19 Jan 2021 by Policybazaar 7963 Views
Public Liability Insurance Act, 1991 is legislation that provides for the protection of individuals from personal...Read more
14 Feb 2023 by Policybazaar 3686 Views
Product recall liability policy is generally purchased by manufacturers dealing with toys, electronics, beverages...Read more
28 Mar 2023 by Policybazaar 1842 Views
The pressure on restaurants to maintain the highest hygiene and safety standards is enormous as they are subject...Read more
27 Feb 2024 by Policybazaar 263 Views
The "Coir Vikas Yojana" scheme, formerly known as the Coir Plan...Read more
29 May 2024 by Policybazaar 81 Views
In the context of any developing economy, the Small Scale Sector...Read more
29 Apr 2024 by Policybazaar 108 Views
The Indian government has approved a new program called the...Read more
26 Apr 2024 by Policybazaar 172 Views
The pressure on restaurants to maintain the highest hygiene and...Read more
27 Feb 2024 by Policybazaar 263 Views
Choosing the right insurance policy is a crucial decision for...Read more
22 Feb 2024 by Policybazaar 285 Views
Policybazaar for Business - Comprehensive Liability Insurance - Customer Reviews
View all
Based on 27 reviews
out of 5
Based on 27 reviews
1 users
15 users
11 users
0 users
0 users
4.3 April 09, 2023
Competitive Premiums
The premiums offered by PolicyBazaar for the Comprehensive General Liability Insurance are competitive, considering the extensive coverage and top-notch customer service they provide.Truly recomend it.
4.3 March 28, 2023
Worth Buying
PolicyBazaar worked closely with me to tailor the coverage to meet the specific needs of my business.Worth buying.
3.8 March 16, 2023
Wide Coverage
One of the most significant aspects of this insurance is its coverage. It provides extensive protection against a wide range of liabilities, including bodily injury, property damage, etc. Thanks for the policy PB
3.8 March 04, 2023
Peace Of Mind
I have been a satisfied customer of PolicyBazaar for several years now. It offers a comprehensive and reliable safety that has given me peace of mind and allowed me to focus on growing my business without constant worry about unforeseen events.Thankyou PB.
3.8 February 20, 2023
Claim Process Is Hassle Free
PolicyBazaar's claims process is efficient and hassle-free. In the unfortunate event of a claim, they handled everything swiftly and professionally, ensuring a smooth resolution without unnecessary delays. This reliability and promptness have further strengthened my trust in their services.Thankyou.
4 February 20, 2023
Great Customer Support
PolicyBazaar can help you get your Insurance as I am in the construction Industry and needed some guidance on risk concerns. I contacted PolicyBazaar Team, whO explaned to me the process to get the Insurance. Thank you PolicyBazaar.
3.8 February 16, 2023
Damages Covered
I recently purchased CGL insurnace from PolicyBazaar. They helped me to cover my damages. Thankyou.
4 February 12, 2023
Helpful Team
We were looking to buy Comprehensive General Liability Insurance Plan that protects Third party property from any accidental damage at my workplace. So we landed on the PolicyBazaar website. It was well managed and described all the benfits in detaill... We contacted their Customer support and dcided to buy from them. Thanks, PolicyBazaar Team
3.8 February 08, 2023
All In One Platform
It is an All in one platform which provided me unique perks, Low premium prices and a fast claim settlement process. Thankyou PB. Excellent platform.
4.3 February 04, 2023
Good Package
Got a really good coverage. Thanks, PolicyBazaar