The lawsuit that comes from inside your business
Employment practices liability insurance covers claims brought by employees, former employees and applicants: wrongful termination, discrimination, harassment, retaliation and failure to promote. General liability and workers comp both exclude these entirely.
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What this coverage includes
- Wrongful termination and constructive discharge
- Discrimination on any protected basis
- Harassment, including third-party claims
- Retaliation and whistleblower claims
- Defense costs from the first demand letter
Why small Texas employers get hit hardest
Businesses under 50 employees rarely have in-house HR, and most employment claims are decided on documentation. Even a claim you win costs money: EEOC charges routinely run tens of thousands in defense before any settlement. EPLI pays that defense.
What EPLI will not cover
Unpaid wages and overtime under the FLSA are usually excluded or sub-limited, as are intentional acts and criminal conduct. Wage and hour defense can often be added as a separate sub-limit – ask us for it specifically.
Third-party coverage matters if you serve the public
Standard EPLI covers employee claims only. Third-party EPLI extends to discrimination or harassment claims brought by customers, vendors and clients. Retail, restaurants and healthcare should carry it.
What lowers your EPLI premium and your risk
Written job descriptions, a documented handbook with an anti-harassment policy and complaint procedure, consistent performance documentation, and a defined termination process. Underwriters ask about all four and price accordingly.
Most EPLI carriers include free HR hotline access and template documents with the policy. Use them – the same underwriter that gave you the hotline will judge whether you followed a process when the claim arrives.
Document terminations before they happen, not after. The difference between a defensible termination and an expensive one is almost always a paper trail created while performance was still being managed.
If you offer group benefits, coordinate EPLI with your benefits administration – eligibility and leave decisions generate a meaningful share of employment claims. See employee benefits.
Frequently asked questions
Is EPLI required in Texas?
No, but many management liability packages and larger client contracts effectively require it.
How much does EPLI cost?
A small Texas employer commonly pays $800-$3,000 a year for a $1M limit depending on headcount and industry.
Can EPLI be added to my business policy?
Sometimes as an endorsement, though standalone policies are usually broader. See business insurance.
Get an EPLI quote
BenefitExcel is an independent agency in Corpus Christi. We shop multiple carriers on your behalf instead of selling one company’s product, and we review every renewal so you are not quietly paying more each year. Request a quote or call (361) 808-4988.