Employment Practice Liability Insurance

Shield your business from employee-related claims including discrimination, wrongful termination, harassment, and more

Protect Your Business from Workplace Claims

Employment Practice Liability Insurance (EPLI) provides coverage for businesses against claims made by employees alleging discrimination, wrongful termination, harassment, and other employment-related issues.

Even the most well-managed businesses can face employment-related lawsuits. The average cost of defending and settling an employment claim can exceed $160,000, making EPLI an essential safeguard for businesses of all sizes.

Whether you have 5 employees or 500, EPLI coverage ensures your business is protected from the financial devastation that workplace lawsuits can cause.

Understanding EPLI Coverage

Employment Practice Liability Insurance is designed to protect employers from claims arising out of the employer-employee relationship

Legal Defense Costs

Covers attorney fees, court costs, depositions, and other legal expenses to defend your business against employment-related claims, even if the allegations are baseless.

Settlements & Judgments

Pays for settlements negotiated out of court or judgments awarded by a court, protecting your business from potentially devastating financial losses.

Third-Party Claims

Many EPLI policies also cover claims from non-employees such as customers, vendors, or contractors who allege discrimination or harassment by your employees.

What EPLI Covers

Comprehensive protection against the most common employment-related claims

Wrongful Termination

Claims that an employee was fired illegally, including termination based on discrimination, retaliation, or violation of employment contracts.

Harassment

Allegations of sexual harassment, hostile work environment, bullying, or any unwelcome conduct that creates an intimidating workplace.

Discrimination

Claims based on race, gender, age, religion, disability, national origin, pregnancy, or other protected characteristics under federal and state law.

Retaliation

Allegations that an employee was punished for filing a complaint, participating in an investigation, or exercising their legal rights.

Breach of Employment Contract

Claims that the employer violated the terms of a written or implied employment agreement, including compensation and benefit disputes.

Defamation and Invasion of Privacy

Allegations of slander, libel, or invasion of privacy related to employment references, performance reviews, or workplace communications.

Wage and Hour Disputes

Claims related to unpaid overtime, misclassification of employees, failure to provide required breaks, or minimum wage violations.

Emotional Distress

Claims that employer actions or workplace conditions caused severe emotional or psychological harm to an employee.

Did You Know?

According to the EEOC, over 73,000 workplace discrimination charges are filed each year in the United States. Even small businesses with just a handful of employees can be targets. EPLI coverage is no longer optional — it's a necessity for responsible business owners.

The Risk Is Real

Employment-related lawsuits are among the fastest-growing areas of litigation in the United States

73,000+

EEOC charges filed annually in the U.S.

$160K

Average cost to defend and settle a claim

41%

Of EPLI claims target small businesses

25%

Of businesses will face an employment claim

Who Needs EPLI Coverage?

Any business with employees is at risk — these industries face especially high exposure

Retail and Hospitality

High employee turnover and customer-facing roles increase exposure to harassment and discrimination claims.

Healthcare

Complex staffing structures and high-stress environments make healthcare employers frequent targets.

Construction

Workforce diversity and safety-related terminations can lead to wrongful termination and discrimination claims.

Technology

Rapid growth, layoffs, and competitive hiring practices create unique employment liability risks.

Food Service

Restaurants and food businesses face frequent wage disputes, harassment claims, and high turnover issues.

Transportation and Logistics

Driver classification disputes, safety terminations, and DOT compliance create employment practice risks.

Financial Services

Compensation disputes, non-compete enforcement, and regulatory pressures increase claim frequency.

Nonprofits

Limited HR resources and volunteer management create unique vulnerabilities to employment claims.

Manufacturing

Workplace safety issues, shift scheduling disputes, and union-related matters drive employment claims.

Every Employer Needs EPLI

Whether you have 2 employees or 2,000, employment-related claims can happen to any business. Even frivolous lawsuits cost thousands to defend. EPLI ensures you're never caught off guard.

Frequently Asked Questions

Common questions about Employment Practice Liability Insurance

What is Employment Practice Liability Insurance (EPLI)?

EPLI is a type of business insurance that protects employers against claims made by employees alleging violations of their legal rights as workers. This includes claims of discrimination, wrongful termination, sexual harassment, retaliation, wage and hour disputes, and other employment-related issues. The policy covers legal defense costs, settlements, and judgments.

Does EPLI cover claims from former employees?

Yes, EPLI typically covers claims from current employees, former employees, and even job applicants. A former employee can file a claim for wrongful termination, discrimination during employment, or retaliation months or even years after leaving your company. EPLI ensures you are protected against these delayed claims.

How much does EPLI cost?

EPLI premiums vary based on several factors including the number of employees, industry, claims history, HR practices, and coverage limits. Small businesses with fewer than 25 employees might pay $800 to $3,000 annually, while larger companies could pay $5,000 to $20,000 or more. We work with multiple carriers to find you the most competitive rates.

Is EPLI required by law?

EPLI is not legally required in most states, including Iowa. However, it is strongly recommended for any business with employees. Employment lawsuits are increasingly common and can be financially devastating without insurance coverage. Many businesses consider EPLI essential risk management, similar to general liability insurance.

Does my General Liability policy cover employment claims?

No, standard General Liability Insurance does not cover employment-related claims. General Liability covers bodily injury and property damage to third parties, while EPLI specifically covers claims arising from the employer-employee relationship. You need a separate EPLI policy or endorsement to be protected against employment claims.

What is the difference between EPLI and Workers' Compensation?

Workers’ Compensation covers medical expenses and lost wages when an employee is injured or becomes ill on the job. EPLI covers claims related to employment practices such as discrimination, harassment, wrongful termination, and retaliation. These are two distinct types of coverage that address very different risks, and most businesses need both.

Can EPLI help prevent lawsuits?

While EPLI itself doesn’t prevent lawsuits, many EPLI carriers offer risk management resources including employee handbook reviews, HR hotlines, training programs, and best practice guides. These resources can help you implement proper employment practices that reduce your exposure to claims. At Densmore, we also provide guidance on risk management strategies.

Does EPLI cover claims related to remote workers?

Yes, EPLI coverage extends to claims from remote and hybrid employees. With the rise of remote work, new employment practice risks have emerged including virtual harassment, remote monitoring privacy concerns, and work-from-home accommodation disputes. Your EPLI policy protects against these modern workplace claims.

Why Choose Densmore Insurance?

Trusted EPLI expertise for Iowa businesses and employers

EPLI Specialists

Our agents have deep expertise in Employment Practice Liability Insurance and understand the unique risks facing Iowa employers across all industries.

Multiple Carrier Options

As an independent agency, we shop multiple top-rated carriers to find you the best EPLI coverage at the most competitive rates available.

Tailored Coverage

We customize your EPLI policy to match your specific industry, workforce size, and risk profile — no cookie-cutter solutions.

Claims Support

If you face an employment claim, we guide you through every step of the process and advocate on your behalf with the insurance carrier.

Risk Management Resources

We connect you with HR best practices, employee handbook templates, and training resources to help prevent claims before they happen.

Local Iowa Expertise

We understand Iowa employment law and the specific challenges facing businesses in our community, providing locally relevant guidance.

Ready to Protect Your Business?

Get a customized Employment Practice Liability Insurance quote today

Get Your EPLI Quote

Protect your business from employment-related claims with comprehensive EPLI coverage. Fill out the form and we’ll provide a customized quote tailored to your business needs.

Phone

(515) 967-3390

Email

info@densmoreis.com

Address

85 Plaine Street SE, Suite G, Bondurant, Iowa 50035

Visit Our Office

Stop by our location to speak with one of our experienced insurance agents in person.

Densmore Insurance Strategies, Inc.

Bondurant Office (Main)

Address

85 Paine St SE ste g, Bondurant, IA 50035

Phone

(515) 967-3390

Office Hours

Mon - Fri: 8:30 AM - 5:00 PM Sat - Sun: Closed