The One Insurance Coverage Every Business Needs in 2025: Employment Practices Liability (EPLI)

The One Insurance Coverage Every Business Needs in 2025: Employment Practices Liability (EPLI)

When business owners think about essential insurance coverages, policies like general liability, property, or cyber insurance often come to mind. But there’s one coverage that many overlook — and it’s becoming increasingly important in today’s workplace: Employment Practices Liability Insurance, or EPLI.

What Is EPLI?

Employment Practices Liability Insurance (EPLI) protects your business against claims related to employment issues such as wrongful termination, harassment, discrimination, and retaliation.

These claims can arise from employees, job applicants, or even third parties, and they can happen to any business — large or small.

Even if the claim is completely groundless, your business could still face thousands of dollars in legal defense costs just to prove your innocence.

Why EPLI Matters More Than Ever in 2025

In recent years, the workplace landscape has changed dramatically. Between new regulations, remote work environments, and growing awareness of employee rights, businesses of all sizes are being held to higher standards of conduct.

Unfortunately, many small and midsize businesses still don’t carry EPLI or only have it as a small endorsement attached to another policy. This leaves a major gap in protection.

EPLI claims have been steadily increasing in both frequency and severity — and a single lawsuit could cost more than most small businesses can afford to defend.

Common Misconception: “I Already Have General Liability.”

One of the biggest misconceptions business owners have is assuming their general liability insurance covers these types of employment-related claims.

It doesn’t.

General liability protects your business against bodily injury or property damage claims — not workplace disputes. EPLI is a specialized coverage designed specifically for employment-related lawsuits and investigations.

The Cost of Not Having EPLI

The cost of defending an employment claim can easily exceed $50,000–$100,000, even if your business did nothing wrong. Settlements can push those numbers even higher.

Without EPLI, your business could be responsible for paying all of that out-of-pocket. And beyond the financial burden, these claims can cause serious damage to your company’s reputation.

The Good News: EPLI Is Affordable

Compared to the potential risks, EPLI is one of the most affordable forms of coverage a business can have. Premiums are typically a fraction of what even a single claim could cost.

You can often add EPLI as an endorsement to your general liability policy, or purchase it as a standalone policy. Either way, it’s an essential part of a complete insurance program.

Final Thoughts

EPLI isn’t just about protecting your finances — it’s about protecting your people and your business reputation.

In 2025 and beyond, the businesses that will thrive are the ones that take proactive steps to protect themselves from the unexpected.

If you’re unsure whether your business currently has EPLI coverage — or if your limits are high enough — now is the perfect time to review your insurance program.

Key Takeaways

• EPLI covers wrongful termination, discrimination, harassment, and retaliation claims.
• Claims can come from employees, applicants, or third parties.
• General liability does not cover employment-related issues.
• Legal defense costs alone can exceed $50,000–$100,000.
• EPLI is affordable and critical for every business in 2025.