Employment Practices Liability (EPLI) Insurance Calculator

About the Employment Practices Liability (EPLI) Insurance Calculator

Employment practices liability insurance (EPLI) protects employers against claims by employees alleging wrongful termination, discrimination, sexual harassment, retaliation, and other employment-related issues. With employment lawsuits on the rise, EPLI has become essential coverage for businesses of all sizes.

This calculator estimates your EPLI premium based on the number of employees, industry risk, annual revenue, and whether you've had prior employment claims. Larger employers and high-risk industries pay more because they face greater exposure to employment-related litigation.

This is an educational estimate only and not a binding insurance quote. EPLI pricing varies significantly by carrier, state employment laws, company HR practices, and specific risk factors. Consult a licensed insurance professional for accurate EPLI quotes.

When This Page Helps

The average employment practices lawsuit costs $75,000-$125,000 to defend, even when the employer wins. EPLI covers legal defense costs, settlements, and judgments. With increasingly complex employment laws and a litigious workforce, this coverage protects your business from potentially devastating claims.

How to Use the Inputs

1. Enter your total number of employees.
2. Select your industry risk level.
3. Enter your annual revenue.
4. Indicate whether you have prior employment claims in the last 3 years.
5. Review the estimated annual premium and per-employee cost.
6. Consider adjusting your deductible to manage premium costs.

Example Calculation

Tips & Best Practices

• Implement strong HR policies and employee handbooks to reduce EPLI claims.
• Regular management training on harassment and discrimination prevention can earn premium credits.
• Document all hiring, discipline, and termination decisions thoroughly.
• Higher deductibles reduce premiums but increase out-of-pocket costs per claim.
• EPLI is often included in a management liability package with D&O and fiduciary coverage.
• This is an educational estimate only — contact a licensed broker for binding quotes.

The Growing Need for EPLI

Employment-related lawsuits have increased dramatically. The EEOC receives over 70,000 charges annually, and private lawsuits add tens of thousands more. Even frivolous claims cost $25,000-$50,000 to defend. EPLI ensures these costs don't come directly from your operating budget.

Common EPLI Claims

The most frequent EPLI claims include wrongful termination (the #1 claim), discrimination, sexual harassment, retaliation, and failure to accommodate disabilities. Remote work has introduced new claims around monitoring, work-life balance, and virtual harassment.

EPLI as Part of a Management Liability Package

Many insurers bundle EPLI with D&O and fiduciary liability in a management liability package. This approach often provides broader coverage at a lower total cost than purchasing each policy separately. It also simplifies administration and renewal.

Frequently Asked Questions

• What does EPLI cover?

  EPLI covers claims by employees alleging wrongful termination, discrimination (age, sex, race, disability), sexual harassment, retaliation, breach of employment contract, failure to promote, and wage/hour violations (in some policies). Coverage typically includes both legal defense costs and any settlements or judgments awarded. Some policies also extend to claims from former employees, job applicants, and third parties such as customers or vendors.

• How many employees before I need EPLI?

  Even businesses with one employee face EPLI risk. However, risk increases significantly with headcount. Most insurers recommend EPLI once you have 10+ employees, though smaller firms benefit too.

• Does EPLI cover wage and hour claims?

  Most standard EPLI policies exclude wage and hour class actions. However, many carriers now offer this coverage as an endorsement for an additional premium. It's increasingly important given the rise in wage/hour litigation.

• Are independent contractors covered?

  Generally, EPLI covers claims by employees only, not independent contractors. However, misclassification claims (where a contractor argues they should be treated as an employee) are typically covered.

• What reduces EPLI premiums?

  Strong HR practices, employee handbooks, regular training, clear anti-discrimination policies, documented performance reviews, and a claims-free history all help reduce premiums. Some insurers offer credits for HR audit compliance.

• Does general liability cover employment claims?

  No. General liability specifically excludes employment-related claims. EPLI is a separate coverage designed for these risks. Many businesses need both GL and EPLI for comprehensive protection.