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What Is EPLI—and Does Your Business Need It?

Written by Tony May—Co-Owner, Executive Vice President

June 1, 2025

Blog What Is EPLI—and Does Your Business Need It?

If your business has employees, you’re exposed to more than just operational risks; you’re also at risk of being sued over employment practices. Even if you do everything by the book, a misunderstanding or misstep can lead to expensive and time-consuming legal action.

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That’s where Employment Practices Liability Insurance (EPLI) comes in. This coverage protects your business from claims made by employees or job candidates over workplace-related issues—claims that can affect your finances, reputation, and ability to grow.

What Does EPLI Cover?

EPLI helps cover the cost of defending your business and paying damages in employment-related lawsuits. Claims may come from current employees, former employees, or even job applicants.

Here’s what an EPLI policy typically protects against:

  • Wrongful termination
  • Discrimination (race, gender, age, disability, etc.)
  • Sexual harassment
  • Retaliation or constructive discharge
  • Defamation or emotional distress
  • Invasion of privacy
  • Workplace torts, like slander

Depending on your business and its structure, EPLI can be added to your directors and officers (D&O) liability coverage, especially if leadership is likely to be named in a claim.

Why Your Business Could Be at Risk

You might be surprised by how frequent—and costly—these claims are. Consider these facts:

  • A private company is more likely to face an EPLI claim than a general liability claim
  • Roughly 75% of litigation against corporations involves employment disputes
  • 65% of employers who fire an employee will face a discrimination lawsuit
  • The average cost to defend an EPLI claim is $150,000
  • The median settlement is around $250,000

These aren’t just numbers—they represent real legal and financial risks that can impact businesses of all sizes.

Real-World Scenarios

Here are just a few examples of EPLI claims that led to significant settlements:

  • Race and national origin discrimination: A group of employees at a tech company alleged unequal treatment and a hostile work environment. Settlement: $635,000 (salary increases, enhanced promotional activities).
  • Sex discrimination class action: Eight employees sued over wage disparities and pregnancy leave practices. Settlement: $600,000, plus $5 million in legal fees.
  • Age discrimination and retaliation: A senior regional attorney sued a securities dealer, claiming age discrimination and retaliation. He claimed he was unfairly terminated for advice he gave to a co-worker regarding his employment rights. Verdict: $443,000

These cases highlight how easily employment-related claims can arise—even from situations you may not anticipate.

Protect Your Business from the Inside Out

You work hard to create a fair and respectful workplace. However, even with good policies in place, you can still be held responsible for the actions of managers, coworkers, vendors, or customers. And with employment laws constantly evolving, it can be tough to stay ahead of every new regulation.

EPLI gives you a financial safety net, helping you cover legal costs and settlements if a claim does arise.

Contact your Leavitt Group Texas Select advisor today to learn more about EPLI and determine if it’s the right fit for your business.

Have questions? Contact:

Tony May

Tony May

Co-Owner, Executive Vice President

(713) 807-8264
Book an Appointment»

As the director of commercial operations at Leavitt Group Texas Select, I’m responsible for developing our commercial insurance team and overseeing account management, support, and talent acquisition. One of the best parts of my job is helping my team reach group goals by taking an encouraging and supportive approach.

I started in the insurance industry in 1998 as a captive agent with Nationwide Insurance, where I built an agency from scratch. In 2020, I transitioned my agency to become independent, and in 2022, I joined forces with Leavitt Group Texas Select.

I graduated with a Bachelor of Business Administration from Stephen F. Austin State University and continue to educate myself in subjects relevant to my career. I’ve earned my Life Underwriter Training Council Fellow (LUTCF) designation and am a member of several professional organizations, including the Independent Insurance Agents of Houston and Texas, Professional Insurance Agents of Texas, and the Houston Builders Association.

My wife, Felecia, and I have been married for 37 years. We have two sons, Tucker and Austin, a daughter-in-law, Karly, and recently welcomed our first grandchild, Jenna Grace. I enjoy spending time with my family, especially now that our children are adults.

Outside of work, I am very involved with my church, Holy Spirit Episcopal Church, and currently serve on the Investment Committee, as well as act as a board member of the Holy Spirit Episcopal School. I have a weekend hobby farm on 10 acres in La Grange, Texas, that I love working on. It’s nice spending time outdoors, whether it's cutting down and processing trees, tending to my small garden, or working with the two steers I keep on the property. Additionally, I perform regularly as Elvis for the elderly, typically for those suffering from Alzheimer’s or dementia.

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