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What Is Employment Practices Liability Insurance?
Employment practice claims can cost business owners a substantial amount of money. Even if the case is ultimately...
EPLI COST GUIDE · 2026
How much does EPLI cost in 2026?
Employment practices liability insurance pricing by employee count, industry, and risk, plus the levers that actually lower your premium.
Get My EPLI Quote Call 833-776-4671Quick Answer: Most small businesses pay roughly 1,000 to 3,000 dollars per year for EPLI, with a national median near 2,665 dollars (about 222 dollars per month). Employee count is the biggest driver, followed by industry, claims history, and the limit and deductible you choose. Independent brokers can place you with wholesale carriers that often run 20 to 30 percent below direct pricing.
EPLI cost by employee count
Employee count is the single biggest factor in your premium. These are typical annual ranges for a standard policy with a 1,000,000 dollar limit. Your actual quote depends on industry, claims history, and deductible.
| Employees | Typical annual premium | Approx. monthly |
|---|---|---|
| Under 10 | $800 to $1,500 | $70 to $125 |
| 10 to 50 | $2,500 to $4,500 | $210 to $375 |
| 50 to 100 | $5,000 to $8,000 | $415 to $665 |
| 100+ or high-risk | $8,000+ | $665+ |
Ranges are illustrative 2026 estimates for budgeting. The national median EPLI premium is about 2,665 dollars per year, and per-employee cost typically falls between 50 and 150 dollars annually.
What drives your EPLI premium
Number of employees
The primary rating factor. More employees means more exposure and a higher premium.
Industry and turnover
High-turnover and public-facing fields like retail, hospitality, and healthcare pay more.
Claims history
Prior employment claims or active disputes raise your rate or limit your options.
Limit and deductible
Limits usually run 100,000 to 1,000,000 dollars; the average deductible is near 10,000 dollars. Higher deductibles lower the premium.
State and revenue
Some states have more active employment-law climates, and higher revenue signals greater exposure.
HR maturity
A current handbook and documented hiring and termination procedures often earn better pricing.
EPLI cost by industry
Two businesses with the same headcount can pay very different premiums based on how often their industry faces employment claims. Approximate monthly figures for a small employer:
| Industry | Approx. monthly | Why |
|---|---|---|
| Nonprofits | ~$90 | Lower claim frequency |
| Professional and office | ~$150 to $200 | Moderate turnover |
| Retail and hospitality | Higher | High turnover, public contact |
| Healthcare and staffing | Highest | High turnover plus public contact |
Sample EPLI quote scenarios
8-person marketing agency, low turnover, $1M limit
~$1,200 / yr
35-employee restaurant group, high turnover, $1M limit
~$4,000 / yr
60-employee manufacturer, $1M limit, $10k deductible
~$6,500 / yr
120-employee healthcare staffing firm, high risk
~$10,000 / yr
Scenarios are illustrative estimates, not quotes. For exact pricing, see our EPLI coverage page and request a quote.
How to lower your EPLI premium
The biggest savings come from showing carriers you manage employment risk well. Keep a current employee handbook and documented hiring and termination procedures, consider a higher deductible, and bundle EPLI with a business owners policy or directors and officers coverage in a management liability program.
As independent brokers, we also shop wholesale markets that direct-to-consumer sites cannot reach. Remember that general liability excludes employment claims, and physical-injury suits fall under workers compensation, so EPLI is the policy that actually responds. With the EEOC logging 88,531 charges in fiscal year 2024, the right limit usually costs far less than one defense.
EPLI cost FAQ
How much does EPLI cost on average?
Most small businesses pay roughly 1,000 to 3,000 dollars per year, with a national median near 2,665 dollars, or about 222 dollars per month. Your premium depends mainly on employee count, industry, claims history, and the limit and deductible you choose.
How is the EPLI premium calculated?
Employee count is the primary driver, followed by industry risk, annual revenue, claims history, and your chosen limit and deductible. Most policies carry limits from 100,000 to 1,000,000 dollars and an average deductible near 10,000 dollars.
Which industries pay the most for EPLI?
Industries with high employee turnover and frequent public contact, such as retail, hospitality, food service, and healthcare, see more employment claims and pay higher premiums. Nonprofits and small professional offices tend to pay the least.
How can I lower my EPLI premium?
Maintain a current employee handbook and documented hiring and termination procedures, raise your deductible, and bundle EPLI with a business owners policy or directors and officers coverage. Independent brokers can also place you with wholesale carriers that direct buyers cannot access.
Is EPLI cheaper as an endorsement or a standalone policy?
An endorsement on a business owners policy can be cheaper, but it usually carries low sublimits and narrow terms. A standalone policy or a robust endorsement with adequate limits costs more but provides the protection most employers actually need.
How much EPLI coverage do I need?
Most small businesses start at a 500,000 to 1,000,000 dollar limit. Because defending a single claim commonly runs 50,000 to 100,000 dollars or more, higher limits are often worth the modest premium increase. We help match the limit to your employee count and risk.
Get your exact EPLI price
A licensed advisor will shop A-rated carriers and wholesale markets for your real number. No pressure.
Get My EPLI Quote Call 833-776-4671NF
Reviewed by Neal Fusco, VP Commercial Lines
25+ years specializing in commercial and management liability risk across Illinois and 40+ states.