Employment Practices Liability Insurance (EPLI)
Coverage for lawsuits involving discrimination, harassment and wrongful termination
Get the coverage you need to help defend your restaurant. EPLI can help pay legal fees if you’re accused of:
Discrimination
Unfair treatment based on race, age, religion, sex (including pregnancy, gender identity and sexual orientation) or disability.
Wrongful termination
When someone has been illegally fired or laid off due to discrimination, retaliation, a breach of contract or a violation of public policy.
Harassment
Unwelcome verbal or physical behavior such as derogatory jokes, racial or ethnic slurs, unwanted advances, religious comments or offensive pictures.
Learn more about Employment Practices Liability coverage:
What is EPLI insurance?
Employment practices liability insurance (EPLI) can help cover costs if your business is sued by a customer or an employee for sexual harassment, discrimination or wrongful termination.
An EPLI policy can help to cover your legal fees if an employee (or several employees) accuses you of unfairly terminating them or if a customer accuses you of violating their rights.
For example, if one of the sous chefs at your family restaurant accuses a server of sexual harassment, your EPLI coverage could help pay the legal fees if the case goes to court.
It can also help pay for legal expenses associated with Americans with Disabilities Act (ADA) compliance complaints. For example, if a claim is filed that you don’t have proper wheelchair access to your restaurant.
EPLI insurance can help to protect your small businesses from the costs of lawsuits involving:
- Sexual harassment
- Discrimination
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of benefits
- Wrongful discipline or demotion
- Privacy invasion
Note: NEXT currently only provides EPLI coverage for restaurant owners who purchase general liability insurance for restaurants with our Pro or Pro+ package.
Why is Employment Practices Liability insurance important for small businesses?
The number of ADA lawsuits grew by almost 50% from 2017 to 2021, according to global law firm Sayfarth. EPLI can provide financial help for small business owners if they are forced to defend their business.
Small businesses may also be vulnerable to harassment or discrimination claims because they often don’t have a human resource department, legal staff or employee handbook.
If your small business is sued by a customer, employee or former employee, employment liability coverage can help to cover your legal defense costs and a settlement if the employee wins the case.
What does EPLI cover?
EPLI is a type of liability insurance that can help with legal fees if you or someone at your business is accused of harassment or discrimination.
Some of the more common kinds of claims covered under an EPLI policy include:
- Sexual harassment
- Wrongful termination
- Discrimination
EPLI can cover business owners, managers and employees. It comes into effect after a claim is made against your business.
You need to have an active policy at the time the incident occurred, as well as when the claim was filed.
What does Employment Practices Liability insurance not cover?
EPLI does not cover certain types of incidents, including:
- Physical injuries (bodily injury)
- Property damage
- Intentional or dishonest acts
EPLI will also not cover claims that are made if you do not have an active policy — even if you had EPLI when the incident occurred.
You must have coverage when the incident occurred and when the claim is made for it to be effective.
EPLI policies often don’t cover punitive damages or civil or criminal fines.
What's the difference between EPLI insurance vs. Workers' Compensation?
Small business owners might think that workers’ compensation insurance covers all types of employee-related issues. However, workers’ comp mainly helps to protect your business from injuries and illnesses that happen to your employees while at work.
It’s true that workers’ compensation does have a legal component to it. Employers’ liability coverage included in workers’ comp can protect your business from financial losses if an employee files a lawsuit against you.
But under workers’ comp, these types of lawsuits relate only to claims that were caused by the employer’s negligence or because work injuries prevented them from earning benefits.
EPLI is a separate and distinct type of insurance that helps you to pay legal fees for professional discrimination claims employees make against your business. It can help to protect your business from employee accusations of unfair treatment — which is not covered by workers’ comp.
How much does Employment Practices Liability coverage cost?
Like most insurance coverages, the cost of employment practices liability insurance can vary from one company to the next. The amount you’ll spend on EPLI coverage depends on a variety of factors, such as:
- Industry — The type of business you run
- Headcount — How many employees you have on your payroll
- Claims history — If your company has faced an EPLI claim in the past
- Policies — Whether or not you have clear procedures and rules in place
What other types of business insurance do I need?
General liability can provide important financial protection for your business after an accident, but it usually doesn’t protect businesses from all the risks they face.
It's important to consider other types of coverage when exploring your business insurance options and deciding on your risk management plan. For example:
Other types of liability coverage
Professional liability insurance can help protect your business from losses after a professional mistake.
Depending on your industry, you might also benefit from product liability insurance (retail) or liquor liability insurance (food service).
Workers' compensation
Most states require workers’ compensation if you have employees. It can help cover medical expenses and lost wages after an employee’s workplace accident.
Learn more about workers’ compensation.
Commercial property insurance
This coverage can help pay for a replacement or repair for your business property. General liability only over property that doesn’t belong to you.
How to get Employment Practices Liability insurance with NEXT
NEXT currently only offers EPLI to restaurant businesses with our Pro or Pro+ general liability insurance.
You cannot buy employment practices liability from NEXT as standalone coverage without general liability.
It’s easy to get a quote for your business online in less than 10 minutes. Here’s how the process works:
Start a general liability quote. We’ll ask you some basic questions about your business and operations, including:
- Your industry
- Where you do business
- How many years you have owned the business
- Number of employees
- Expected annual revenue
- Recent insurance and claims history
We will use the information you share to create a customized general liability policy that includes employment practices liability — if you select Pro or Pro+ (not our basic insurance offer).
If you like what you see, you can adjust the package limits to fit your preferences and make your purchase.
Coverage on-the-go for policyholders
Manage your policies, send and create certificates of insurance, or file a claim with our app.
Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.