When an employee — or a job applicant, or a former employee — claims discrimination, harassment, retaliation, or wrongful termination, your general liability policy will not defend you. EPLI is built for exactly those claims.
Coverage is subject to eligibility and carrier underwriting.
Claims based on race, sex, age, disability, religion, national origin, sexual orientation, and other protected characteristics.
Sexual harassment and hostile work environment claims, including claims against supervisors.
Claims that an employee was fired illegally or in breach of an employment agreement.
Claims that an employer punished someone for complaining, reporting, or taking protected leave.
Claims by applicants who were not hired, or employees who were passed over.
Optional coverage for harassment or discrimination claims brought by customers or vendors.
New Jersey’s Law Against Discrimination applies to employers regardless of how many people they employ. A business with two employees can face the same kinds of claims as one with two hundred. Pennsylvania’s Human Relations Act generally applies to employers with four or more employees, and federal laws apply at various size thresholds.
These claims are costly to defend even when the employer did nothing wrong. Legal fees, investigation, and the time it takes to respond add up long before a case is resolved. A large part of what EPLI provides is that defense.
General liability policies typically exclude employment-related claims. A business owner’s policy usually does too, though a few offer a small EPLI endorsement. Workers’ compensation covers workplace injuries, not discrimination or wrongful termination.
| Term | What it means |
|---|---|
| Claims-made | Coverage applies to claims first made during the policy period, subject to the retroactive date. Switching carriers carelessly can leave a gap. |
| Defense within limits | Defense costs usually reduce the available limit. |
| Retention | Your deductible, which often applies to defense costs as well as settlements. |
| Wage-and-hour exclusion | Claims over unpaid overtime and wage classification are commonly excluded, or covered only for limited defense costs. |
| Consent to settle | Terms on what happens if the carrier wants to settle and you do not. |
Carriers look favorably on businesses with an employee handbook, a written anti-harassment policy with a complaint procedure, consistent documentation of performance issues, and training for managers. Many EPLI carriers also provide access to an employment law hotline and HR resources as part of the policy.
Drafting or reviewing your handbook and policies is legal work, not insurance work. We will point you to the policy’s resources, or to employment counsel, rather than give legal advice.
Pricing depends mainly on the number of employees, your industry, location, prior claims, and the employment practices you have in place. Small employers can often buy meaningful coverage at a modest premium.
Possibly. Claims can be brought by workers who believe they were misclassified, and by applicants. Some contractors also bring discrimination claims.
As soon as you receive a demand letter, an agency charge (such as with the EEOC or the NJ Division on Civil Rights), or a lawsuit — and before you respond. Late notice can jeopardize coverage under a claims-made policy.
Some carriers offer an EPLI endorsement on a BOP, usually with lower limits and narrower terms than a standalone policy. We can compare both.
Tell us about your workforce and practices. We will compare EPLI forms, retentions, and wage-and-hour terms side by side.
Cadabra Asset Protection LLC is a licensed independent insurance agency serving New Jersey and Pennsylvania. Michael Lindner Jr., licensed insurance producer.
Employment practices liability forms vary significantly by carrier. Nothing on this page is legal advice about employment law obligations; consult employment counsel about your practices and policies.
Coverage descriptions on this page are general summaries provided for informational purposes only. Coverage, limits, endorsements, and exclusions vary by carrier and by state, and actual coverage is governed solely by the terms of the issued policy. This page is not an offer of insurance and is not a guarantee that coverage will be issued. All coverage is subject to eligibility and carrier underwriting approval.
Nothing on this page is legal advice, and no attorney-client relationship is created by its use or by contacting this agency for insurance services.
