Which Businesses Need EPLI? (By Industry)

Does every business with employees need EPLI?

In practical terms, yes. The moment you hire, manage, discipline, or fire someone, you have exposure to an employment-practices claim. Employment practices liability insurance is the coverage that responds to it. For the full definition and what it covers, see what is employment practices liability insurance.

The federal anti-discrimination laws the U.S. Equal Employment Opportunity Commission enforces apply to most employers with 15 or more employees, but Illinois and local rules often reach smaller employers, and a wrongful-termination or harassment lawsuit can be filed against a business of any size.

Which industries need EPLI the most?

Some business types face far higher employment-claim frequency because of their staffing model. These are the ones we most often recommend review their EPLI limits:

Most of these businesses build their program on a general liability policy and a business owners policy, then add EPLI to close the employment-claim gap.

Do small businesses and nonprofits need EPLI?

Yes, and often more than large companies. Small businesses and nonprofits rarely have a dedicated HR department, which is exactly where employment claims start and where they could have been prevented. A single wrongful-termination or harassment suit can cost more than years of premium.

Churches, dog boarding and pet services, lawn and landscaping crews, daycares, and professional offices all carry the exposure the moment they put someone on payroll.

When might a business not need EPLI?

The one clear case is a true solo operation: a sole proprietor with no employees and no plans to hire. If that is you, your exposure is low today. The moment you bring on your first hire, or even an intern, the exposure begins, so it is worth a quick review before you staff up.

How EPLI fits with your other coverage

EPLI is separate from workers compensation, which covers physical injury on the job. For a side-by-side, see EPLI vs. workers comp. Businesses that carry EPLI also commonly review directors and officers insurance for leadership-decision exposure and pair it with workers compensation. Our EPLI coverage page has the full details, and we can package the set so there are no gaps.

Frequently asked questions