EPLI Insurance in California
What is an EPLI?
Employment Practices Liability Insurance (EPLI) is designed to protect businesses from claims made by employees related to employment practices. This type of coverage typically includes protection against allegations of wrongful termination, discrimination, sexual harassment, and other employment-related issues. As workplace disputes become more common, EPLI serves as an essential safeguard, covering the costs of legal defense, settlements, and judgments that may arise from such claims.
EPLI is crucial for businesses of all sizes, helping them manage the financial and legal risks associated with employee lawsuits. Whether the claim is valid or not, defending against such cases can be expensive and time-consuming. This insurance ensures that employers can focus on their operations without the constant worry of potential litigation.
The cost of EPLI coverage varies depending on factors such as the size of the company, industry, and location. Despite these variations, EPLI provides invaluable protection, especially in today’s increasingly litigious environment, where even small businesses can be vulnerable to costly employee-related claims.
What EPLI Options are Available?
An immediate EPLI policy provides instant protection for your business, covering claims related to employee practices such as wrongful termination, discrimination, and harassment. You can choose whether you want coverage for a fixed term or prefer long-term, ongoing protection. The premium for your policy is typically based on your business size, the number of employees, industry, and any past claims history. Immediate EPLI ensures that your business is covered from day one, offering peace of mind as soon as the policy is in place.
A deferred EPLI policy is structured in two main phases:
- Accumulation: In this phase, your business pays premiums over time, either through a lump sum or regular payments. During this period, your policy accumulates coverage, offering flexibility to adjust as your business grows or changes. This phase allows you to build coverage and increase limits over time, all while keeping the policy’s tax advantages intact.
- Distribution: Once your business is ready to use the policy, this phase begins. Whether you face a claim related to employee disputes or need legal defense, the policy comes into effect. You can choose to handle claims individually or rely on the policy to provide defense, settlements, or judgments. The distribution phase is designed to provide you with financial protection when claims arise, ensuring that you can manage employee-related risks effectively.

Why Buy an EPLI?
EPLI Insurance is a vital safeguard for businesses, providing protection against costly employee-related claims such as wrongful termination, harassment, and discrimination. Without EPLI, your company may be exposed to significant financial risk due to lawsuits, even if the claims are not valid.
With EPLI, you gain peace of mind knowing that your business is protected against legal expenses, settlements, and judgments. It’s an essential investment to ensure that you can focus on growing your business without worrying about employment-related risks.
Contact us today to learn more about how EPLI can help protect your business. We’re happy to answer your questions and assist you in securing the right coverage.
CA Dept of Insurance 0659943