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Why You Need Employment Practices Liability Insurance

Liability lawsuits by employees against their employer or even others in the workplace is the fastest growing area of all commercial legal claims.

Yes, your company can be in hot water for claims filed not just against you but also by one employee against another, even for allegations you know nothing about!

And you can even be sued by a non-employee — because you failed to hire them.

Once, these actions mainly targeted big firms. Now small and medium businesses are just as likely to be hit by a lawsuit. Firms that don’t have insurance face potential ruin.

How costly is an employment practices liability claim? Well, just your defense costs are likely to be in the $40,000 to $60,000 range, sometimes considerably more. Then, as far as any settlement goes, the sky’s the limit.

You need protection — employment practices liability insurance, or EPLI for short.


This can protect you against lawsuits claiming:

  • Discrimination, including age, race, gender and creed
  • Wrongful termination
  • Sexual harassment
  • Retaliation or infliction of distress
  • Failure to hire, failure to promote or deprivation of a career opportunity
  • Defamation
  • Breach of employment contract
  • Mismanagement of employee benefit plans

Employment practices liability insurance through SCM will protect you against all these risks and more. It normally covers you and your entire workforce — owners, directors, officers, managers and all other employees.

It covers you for your defense costs, regardless of who wins the case. Then it protects you against the cost of damages — subject to your paying the first part (the deductible) and then up to agreed limits within the policy

Most policies include a high level of support and guidance. For example, they provide a toll-free hotline, risk management tools and direct connection with legal defense attorneys.

More Options

Your employment practices liability insurance will be customized to precisely meet your requirements.

In some cases, it can be added as an endorsement to other policies, such as a Business Owners’ Policy (BOP) or Directors and Officers (D&O) insurance. Or it can be a standalone policy.

An optional and equally important type of protection is insurance for claims under the Fair Labor Standards Act (FLSA). This provides defense costs for claims related to wage and hour issues, time cards, overtime and so on.

What’s Not Covered

Employment practice liability insurance covers a huge range of potential issues but not employee dishonesty, physical injuries or damage to property.

FLSA insurance mentioned above only covers defense costs. It does not pay for damages.


When you buy employment practices liability insurance, you want to know you’re getting the right protection for your business at the right price.

In that case, you’ve come to the right place. We’re nationwide experts for this type of insurance. And because SCM is an independent agency, we work with all leading insurers, not just one.

That means we can secure the best protection at the most competitive price. With our help, you can select the deductible and coverage limits to match your comfort level and your budget.

We also offer terms to help you finance your premium payment.

That’s not all. Our award-winning customer service is always here to support and advise you. Whether you want to talk about risk management or help with a claim, we’re here.

Find Out More Now

How much will employment practices liability insurance cost?

That depends on a number of factors, like where you’re located, how many you employ and what type of business you’re in.

Here at SCM, our experts can give you a ballpark figure within just a few hours.

It won’t cost you anything to find out and we’ll work with you to create the best possible protection.

Now is the time to act. Don’t put your business at risk by avoiding this critical protection. Contact us today!

We offer more than just a policy

See what we can do for you today