Employers Liability vs Employment Practices Liability (EPLI): What’s the Difference?

Employers Liability vs Employment Practices Liability (EPLI): What’s the Difference?

When it comes to protecting your business and employees, it’s important to understand the different types of liability insurance available. Two coverages that often get confused are Employers Liability and Employment Practices Liability Insurance (EPLI). While they sound similar, they protect your business against very different risks.

In this article, we’ll break down how each coverage works, what they cover, and why many businesses need both.

What Is Employers Liability Insurance?

Employers Liability coverage is usually included as part of your workers’ compensation policy. Workers comp covers medical bills, lost wages, and rehabilitation if an employee is injured on the job. But what happens if that employee feels the injury was caused by unsafe working conditions or employer negligence?

That’s where Employers Liability steps in. It covers:

• Legal defense costs if your business is sued
• Settlements or judgments if your business is found liable

Think of Employers Liability as the safety net for lawsuits that go beyond standard workers comp benefits.

What Is Employment Practices Liability Insurance (EPLI)?

Employment Practices Liability Insurance, or EPLI, protects your business from claims related to how employees are treated in the workplace. These are not physical injury claims, but rather disputes over employment practices.

EPLI can cover claims such as:

• Wrongful termination
• Harassment (including sexual harassment)
• Discrimination (age, race, gender, disability, etc.)
• Retaliation or failure to promote

Even former employees or job applicants can bring claims like these against your business. EPLI helps pay for legal defense costs and any settlements or damages you may be responsible for.

Key Differences Between Employers Liability and EPLI

• Employers Liability: Protects your business against lawsuits related to employee injuries or illnesses tied to workplace conditions.
• EPLI: Protects your business against lawsuits tied to employment practices and employee rights.

In short:

• Employers Liability = Physical injury claims
• EPLI = Workplace treatment and employee rights claims

Why Your Business May Need Both

Each coverage addresses a very different risk, and one does not replace the other. Relying on only Employers Liability won’t protect you from harassment or discrimination lawsuits. And EPLI won’t step in if an employee sues after a job-related injury.

Together, they form more complete protection against the variety of employee-related claims a business can face.

Final Thoughts

Business owners often underestimate the range of risks that can come from employee claims. Employers Liability protects you from lawsuits tied to workplace injuries, while EPLI defends against claims tied to workplace conduct. Having both in place helps ensure your business is covered on all fronts.

If you’re unsure whether your current coverage is enough, reach out to a commercial insurance professional who can review your policies and make sure there aren’t any costly gaps in protection.