Employment Practices Liability Insurance

Coverage for claims by employees and candidates over hiring, firing, and workplace treatment.

Overview

Covered claims include wrongful termination, discrimination, harassment, and retaliation, and sometimes wage and hour defense. Policies pay defense costs, settlements, and judgments, usually after a retention rather than a deductible, and exclude intentional criminal acts and pension disputes. Defense is the bulk of the value, since even weak claims cost tens of thousands to defend, and federal discrimination charges run tens of thousands of filings yearly in the United States. Limits of 1 million fit most mid size firms, with premiums driven by headcount, turnover, human resources practices, and prior claims. Carriers bundle risk management hotlines and training access, which reduce both frequency and premium.