Estimate EPLI insurance costs based on number of employees, industry risk, annual revenue, and employment practices claims history.
Employment practices liability insurance (EPLI) protects employers against claims by employees alleging wrongful termination, discrimination, sexual harassment, retaliation, and other employment-related issues. With employment lawsuits on the rise, EPLI has become essential coverage for businesses of all sizes.
This calculator estimates your EPLI premium based on the number of employees, industry risk, annual revenue, and whether you've had prior employment claims. Larger employers and high-risk industries pay more because they face greater exposure to employment-related litigation.
This is an educational estimate only and not a binding insurance quote. EPLI pricing varies significantly by carrier, state employment laws, company HR practices, and specific risk factors. Consult a licensed insurance professional for accurate EPLI quotes. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
The average employment practices lawsuit costs $75,000-$125,000 to defend, even when the employer wins. EPLI covers legal defense costs, settlements, and judgments. With increasingly complex employment laws and a litigious workforce, this coverage protects your business from potentially devastating claims. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Base Premium = Number of Employees × Per-Employee Rate Per-Employee Rate = Low: $80, Medium: $120, High: $200 Revenue Factor = 1 + (Revenue / 50,000,000) × 0.10 Claims Surcharge = Prior claims ? 1.35 : 1.0 Estimated Premium = Base Premium × Revenue Factor × Claims Surcharge
Result: $6,096/year
Base premium: 50 × $120 = $6,000. Revenue factor: 1 + ($8M / $50M) × 0.10 = 1.016. No claims surcharge. Estimated premium: $6,000 × 1.016 = $6,096.
Employment-related lawsuits have increased dramatically. The EEOC receives over 70,000 charges annually, and private lawsuits add tens of thousands more. Even frivolous claims cost $25,000-$50,000 to defend. EPLI ensures these costs don't come directly from your operating budget.
The most frequent EPLI claims include wrongful termination (the #1 claim), discrimination, sexual harassment, retaliation, and failure to accommodate disabilities. Remote work has introduced new claims around monitoring, work-life balance, and virtual harassment.
Many insurers bundle EPLI with D&O and fiduciary liability in a management liability package. This approach often provides broader coverage at a lower total cost than purchasing each policy separately. It also simplifies administration and renewal.
EPLI covers claims by employees alleging wrongful termination, discrimination (age, sex, race, disability), sexual harassment, retaliation, breach of employment contract, failure to promote, and wage/hour violations (in some policies). Coverage typically includes both legal defense costs and any settlements or judgments awarded. Some policies also extend to claims from former employees, job applicants, and third parties such as customers or vendors.
Even businesses with one employee face EPLI risk. However, risk increases significantly with headcount. Most insurers recommend EPLI once you have 10+ employees, though smaller firms benefit too.
Most standard EPLI policies exclude wage and hour class actions. However, many carriers now offer this coverage as an endorsement for an additional premium. It's increasingly important given the rise in wage/hour litigation.
Generally, EPLI covers claims by employees only, not independent contractors. However, misclassification claims (where a contractor argues they should be treated as an employee) are typically covered.
Strong HR practices, employee handbooks, regular training, clear anti-discrimination policies, documented performance reviews, and a claims-free history all help reduce premiums. Some insurers offer credits for HR audit compliance.
No. General liability specifically excludes employment-related claims. EPLI is a separate coverage designed for these risks. Many businesses need both GL and EPLI for comprehensive protection.