Protecting Your Business from Employee Lawsuits
EPLI Insurance
No matter how careful you are, running a business means making tough decisions—and sometimes, those decisions don't sit well with everyone. If an employee (or even a job applicant) feels they've been treated unfairly, they could file a lawsuit. Whether it's over hiring, firing, promotions, harassment, or discrimination, one claim can cost your business thousands in legal fees and damages.
That's where Employment Practices Liability Insurance (EPLI) comes in.
EPLI helps cover the cost of defending your business and paying out claims if you're accused of something like:
- Wrongful termination – Letting someone go and they claim it was unfair
- Discrimination – Someone feels they were treated differently because of their age, race, gender, or religion
- Harassment – Claims of a hostile work environment or inappropriate behavior
- Retaliation – An employee says they were punished for speaking up or filing a complaint
Even Small Businesses Can Be at Risk
You don't have to be a big company to get hit with a lawsuit. Small businesses often face the same risks—but may not have the same resources to handle a legal battle. And even if you didn't do anything wrong, you still have to pay to defend yourself. EPLI helps cover:
- Attorney fees
- Court costs
- Settlements or judgments
Real-Life Example
Let's say you run a local restaurant. You let an employee go for repeatedly showing up late. A week later, they file a lawsuit saying they were fired because of their age. Whether it's true or not, you'll need a lawyer—and that gets expensive fast. EPLI steps in to help cover those costs so your business isn't paying out of pocket.
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Who Needs EPLI Insurance?
Any small-business owner with employees should consider buying EPLI insurance. It's especially important in industries that have high rates of employee turnover. Employees in such industries are more likely to allege discrimination, sexual harassment, or wrongful termination, which are the main types of legal claims that EPLI covers.
For instance, restaurants, construction and manufacturing companies, and retailers should purchase EPLI. Moreover, even outside these industries, buying basic EPLI coverage is wise if your business can afford it.
The Cost of EPLI Insurance
The cost of EPLI insurance can start as low as $500 per year for $1 million in coverage for a company with fewer than five employees. However, the actual cost will depend on various factors such as:
- Number of Employees
- Type of Employees (full-time, part-time, or seasonal)
- Industry
- Location
- Historic Employee Turnover Rates at the Company
- The Company's Claims History
- Hiring/Firing Procedures
- Documentation of Employee Training and Conduct
- Amount of Coverage and Size of Deductible
We'll provide you an exact price estimate by collecting detailed information about your business and employees.
Affordable Protection That Makes a Big Difference
EPLI is often more affordable than business owners think—and the protection it provides can be a lifesaver. Some general liability policies don't include coverage for employee-related claims, so it's worth checking to make sure you're not exposed.
We'll help you figure out whether EPLI makes sense for your business, and we'll walk you through the process in plain English. No legal jargon.
Let's protect your business and the people who make it run. Get in touch with our team today to learn more about EPLI coverage.
Experienced Risk Advisors
We've been protecting Mississippi businesses for decades. From mom-and-pop shops on the Coast to major operations across the state. Our risk advisors have seen and helped protect just about everything. And thanks to our partnership with Leavitt Group, we've got the reach and resources of a national network, without losing that local touch.
Thinking about starting a business? Already running one and wondering if your coverage still fits? We’re here for that. We'll walk you through your options, answer the questions Google can't, and pull competitive quotes from multiple insurance companies—no pressure, no sales-y nonsense.
We don’t just sell policies. We build real, working relationships. We take the time to understand your business and make sure your coverage actually covers you—not just the bare minimum, but what makes sense for your unique risks. We’re in this with you, not just for the sale.
