Overview
Why is EPLI Needed?
- Statistics show an employer is more likely to have an employment claim than a property or general liability claim.
- The average amount paid for out-of court settlement is $40,000.
- Defense of the average EPLI case, through trial, costs over $45,000.
- The median compensatory award in EPLI cases is $218,000.
- 67% of all employment cases that litigate result in a judgment for the plaintiff.
- Juries have doubled the awards for employment claims.
- 10% of awards in cases involving discrimination and wrongful termination are in excess of $1,000,000.
* Society of Human Resource Management -2025
What is Protected by EPLI?
Employment Practices Liability Insurance (EPLI) covers charges made by employees against an employer for the following:
- Wrongful termination: termination of employment in an illegal manner. Most states laws allow an employer to terminate an employee at will, that is, without notice. There are exceptions however. Depending on the jurisdiction, the discharge may be considered wrongful if the employee can prove: breach of contract, either express or implied, violation of public policy or breach of an implied covenant of good faith and fair dealing.
- Discrimination: unfair treatment of a person, relative to others, so as to deprive that person of equal employment opportunities on the basis of race, color, sex, religion, national origin, disability or wage discrimination based on sex. The laws apply to all aspects of the employment process, from recruitment and selection, to promotion and termination.
- Defamation
- Failure to make partner: is a work place tort and is a violation of a person’s civil rights under common law.
- Negligent supervision or hiring third party claims for discrimination
- Sexual harassment: unwanted sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature where the employee’s compliance with or refusal of the request must affect his or her job performance, or create a hostile work environment.
- Various other forms of inappropriate employment conduct.
Tell Me More
1st Time Buyer EPLI Program
The Nebraska State Bar Association and AMBA are pleased to announce that we now offer for a law firm the 1st Time Buyer EPLI Program. This program allows a law firm on-line to complete the short form application, self-rate and bind coverage. As part of this program membership into the Employment Practices Risk Management Association (EPRMA) is required.
The benefits to membership include compliance training for managers and supervisors, sexual harassment prevention training, a hotline for information on best practices and the ability to procure Employment Practices Liability Insurance at special member rates.
EPLI Total Solutions
For law firms with current Employment Practices Liability Insurance (EPLI) or past losses, AMBA offers “EPLI Total Solutions.” As your insurance professional, we will present your law firm EPLI profile based on the information completed on the EPLI Application Request Form to our preferred provclasser.
To request coverage through the AMBA EPLI Total Solutions:
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Step 1.
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Download and fully complete the EPLI Application Request Form.
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Step 2.
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Submit by fax / email your application Request Form.
Email: plsales.service@getamba.com |
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Step 3.
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Our representative will contact you if further information is needed.
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Step 4.
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Proposal released to you.
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Step 5.
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Our representatives assist you in proposal review and binding of your requested Employment Practices Liability Insurance.
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Contact Information
We’re here to help! Please contact us in whatever manner is most convenient for you.
Address
AMBA
4050 114th Street
Urbandale, Iowa 50322
Phone
Hours
Monday - Friday 8:00 AM - 5:00 PM CT
Frequently Asked Questions
Answers about the plan, including eligibility, options, enrollment, customer service and more.
Isn’t this covered under a general liability policy?
With rare exceptions, claims resulting from the above types of offenses are not covered under general liability policies. First, the majority of these acts are not accidental, so they are not considered occurrences. Also, the injuries they cause do not constitute bodily injury or personal injury as defined under most general liability forms.
Isn‘t this covered under my workers’ compensation policy?
Workers’ compensation policies specifically exclude coverage of employment practice issues. A sample exclusion from one policy states: damages arising out of coercion, criticism, demotion, evaluation, reassignment, discipline, harassment, humiliation, discrimination, against or termination of employee, or personnel practices, policies, acts or omissions are excluded.
I’m a good manager and have a good relationship with my employees. My employees wouldn’t bring a claim against me.
Maybe so, but many businesses, both small and large, are more likely to be sued by employees than third party or customer.
Employment practices claims don’t apply to my law firm because we have fewer than 15 employees.
Not so. In fact, the accusation of a wrongful discriminatory act is cause for legal action regardless of whether you have one employee or one hundred.
I use contract employees, so I have no employment practice liability exposure.
Again not so. Employer has been broadly interpreted by case law to include any personnel who works primarily in your place of business, regardless of whether or not they are directly on your payroll.