4 reasons small businesses decline EPLI coverage


EPLI is an important coverage available to all sizes of businesses.


Many owners of smaller businesses make assumptions about Employment Practices Liability Insurance – and some of those assumptions are not true. EPLI coverage provides vital protection for a small business.

EPLI provides a limit of insurance, separate from the standard commercial policy, to protect your business operations against many actual or alleged wrongful acts. Those could include personnel and staffing matters, hiring and firing or allegations of discrimination in the workplace. Because circumstances can vary widely, it’s important to assess your situation, consult with your attorney and speak to an independent agent who can tailor coverage to fit your needs.

Here are our responses to four common misconceptions about EPLI:

  1. It’s only for large corporations.

Just because a business is small, doesn’t mean it is immune to charges of unlawful employment practices. The difference between large and small companies can be this: expectations. Large businesses recognize the risk and need for protection and often have legal representation advising them of the importance of EPLI coverage. Small businesses often have a familial vibe, so getting hit with a lawsuit feels impossible. It’s not!

  1. We don’t have the funds to pay for coverage.

Smaller businesses may think the coverage is expensive and they cannot afford it. I say they can’t afford to go without it. EPLI claims can easily cost tens of thousands of dollars or more, not including legal defense costs.

  1. The application process is difficult, and we don’t have the documentation to secure coverage.

Your local, independent agent can help your small business apply for EPLI coverage or add it to your existing commercial general liability (CGL) policy.

  1. EPLI coverage is advantageous for only certain types of businesses.

This is a common misconception. Businesses in a wide variety of industries can benefit from EPLI coverage:

  • Distributors
  • Manufacturers
  • Medical and dental offices
  • Publishers
  • Restaurants
  • Retail operations


Innocent employers go to court every day


Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.



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