Top Ten Reasons Why YOUR Business Needs Employment Practices Liability Insurance (EPLI)!
Top Ten Reasons Why YOUR Business Needs Employment Practices Liability Insurance (EPLI)!
Employment lawsuits are on the rise—are you covered? Discover 10 essential reasons your business needs Employment Practices Liability Insurance (EPLI) , including coverage for ADA building and website compliance.
Why EPLI Is No Longer Optional
Running a business comes with its fair share of risks. But one area many business owners overlook is how expensive and damaging employment-related lawsuits can be—even if you’re in the right. Employment Practices Liability Insurance (EPLI) is designed to protect your business from these kinds of legal nightmares. And today, having EPLI isn’t just smart—it’s essential.
Let’s break down exactly why.
1. Employment Lawsuits Are Increasing
Workplace lawsuits have become more common and more expensive. Claims related to discrimination, harassment, and wrongful termination continue to climb, putting businesses of every size at risk. Even a single accusation can trigger legal costs that most small businesses can’t absorb. EPLI helps manage those risks.
2. Legal Fees Alone Can Break the Bank
Even if a lawsuit doesn’t end with a settlement or judgment against you, just defending your business can cost tens—or even hundreds—of thousands of dollars. Attorney fees, court costs, and administrative expenses add up fast. EPLI helps cover those expenses so your business isn’t drained trying to stay afloat during a legal battle.
3. Jury Awards and Settlements Are Higher Than Ever
When cases do lead to payouts, the amounts can be staggering. Whether settled in court or behind closed doors, compensation for claims like emotional distress or lost wages can cripple a business financially. EPLI provides a financial safety net, helping protect your cash flow and your company’s future.
4. It Covers More Than Just Current Employees
Think it’s only your current staff you need to worry about? Think again. EPLI covers claims brought by former employees, job applicants, and even seasonal workers. If someone claims they were passed over unfairly, treated poorly, or wrongfully let go, this insurance can step in and help with legal defense and potential settlements.
5. You Could Be Sued by a Customer or Vendor Too
Here’s where third-party EPLI comes in. If a client or vendor accuses one of your employees of discrimination or harassment, you could face a lawsuit—yes, even if the claim seems far-fetched. Without third-party EPLI coverage, your business would be on the hook for legal fees and damages. With it, you’re covered.
6. ADA Compliance Lawsuits Are Growing
This is a big one—and relatively new. Third-party EPLI can also help with Americans with Disabilities Act (ADA) claims. If your building isn’t accessible, or your website isn’t user-friendly for people with disabilities, someone could file a lawsuit. These cases are becoming more common, especially as website accessibility guidelines become stricter. Adding third-party coverage to your EPLI can help protect your business from these evolving risks.
7. Small Businesses Are Especially at Risk
Large corporations often have legal departments and HR teams to help prevent or manage claims. Smaller businesses? Not so much. If you’re a business owner juggling hiring, firing, and managing staff without much HR support, you’re more likely to face an employment-related issue—and less likely to have the resources to fight it.
8. EPLI Policies Often Include Legal Defense
One of the biggest benefits of EPLI is that it often includes legal defense costs, even if the claim is groundless. Whether you’re facing a government investigation or a private lawsuit, having your legal expenses covered can mean the difference between weathering the storm and shutting your doors.
9. Policies Are “Claims-Made”—Timing Is Everything
Most EPLI policies are written on a “claims-made” basis. That means the policy must be active when the claim is made—not just when the incident happened. If your policy lapses, and a former employee files a claim afterward, you could be left uncovered. Working with an experienced agent like Huff Insurance ensures your policy stays up to date and includes the right retroactive or tail coverage if needed.
10. It Shows You Care About Doing Things Right
Carrying EPLI isn’t just about protecting your wallet—it also shows your team and customers that you take workplace issues seriously. Businesses that prioritize fair treatment and compliance tend to attract better talent, maintain stronger reputations, and reduce turnover. Plus, many EPLI providers offer HR tools and resources to help prevent problems before they start.
Quick Recap: Why EPLI Makes Sense in 2025
- Lawsuits are rising – You need protection from financial devastation.
- Defense costs are high – EPLI helps pay legal fees even if you win.
- Settlements can be massive – Insurance cushions you from large payouts.
- ADA lawsuits are growing – Third-party EPLI adds vital coverage.
- Small businesses lack buffers – EPLI fills the HR and legal resource gap.
FAQs: EPLI in Plain English
Q: What exactly does EPLI cover?
A: EPLI covers claims related to wrongful termination, discrimination, harassment, and other employment issues. It can also cover third-party claims, like ADA-related lawsuits filed by people who aren’t employees.
Q: Does EPLI include ADA website or building complaints?
A: With third-party coverage, yes. If someone claims your website or physical location isn’t accessible and takes legal action, third-party EPLI can help cover legal defense and settlement costs.
Q: I only have a few employees—do I still need EPLI?
A: Absolutely. Small businesses are often more vulnerable because they may not have formal HR processes in place. Even one claim can be financially devastating without this coverage.
Q: Is EPLI the same as general liability insurance?
A: Nope. General liability covers physical injuries and property damage. EPLI specifically handles employment-related claims and certain third-party issues like ADA lawsuits.
Q: What should I look for in an EPLI policy?
A: Look for broad coverage, third-party inclusions, clear definitions, and legal defense benefits. A good agent can guide you through the fine print.
Q: My employees are all family—do I still need EPLI?
A: Yes, you still need it. Even if everyone on your team shares a last name, disputes can still happen—and yes, family members do sue each other. Plus, having only family employees won’t protect you from third-party claims, like a customer or vendor alleging harassment or discrimination. EPLI provides critical coverage no matter who’s on your payroll.
Why Choose Huff Insurance?
When it comes to EPLI, not all policies—or agents—are created equal. That’s where Huff Insurance comes in.
As an independent insurance agency, we work for you, not a single insurance company. That means we compare multiple carriers to find the right EPLI policy for your business’s unique risks—including ADA compliance and third-party coverage. Plus, we take the time to explain every part of your coverage, so you’re never left guessing when it matters most.
The Independent Agent Advantage
- Tailored Advice: We get to know your business before recommending coverage.
- Multiple Carriers: More options = better fit for your budget and needs.
- Advocacy & Support: When a claim arises, we’re in your corner from start to finish.
- Local Expertise: We understand Maryland businesses and the risks they face.
Conclusion:
EPLI might not be the flashiest insurance policy you’ll ever buy—but n today’s world, it just might be the one that saves your business. Let Huff Insurance help you protect what you’ve built and plan for a safer, smarter future.
We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance products. Call us at 410-647-111
