The moment you hire your first employee, you're an employer, and employers get sued. EPLI covers claims that arise from the employment relationship: wrongful termination, discrimination, harassment, retaliation, and failure to hire. These claims can come from current employees, former employees, and even job applicants. You don't have to be a bad employer to face an employment claim. You just have to be an employer.
Last reviewed April 24, 2026 · Reviewed by the Corgi Insurance team
You built the team. EPLI protects you when someone on the team, or someone who wanted to be, files a claim.
Two insuring agreements, the claims that trigger them, and the employment practices that matter most. Important: The coverage descriptions on this page are general summaries for informational purposes only. They do not constitute a policy, binder, or guarantee of coverage. Coverage is provided only under the terms, conditions, exclusions, and limits of the issued policy. Always refer to your actual policy wording and declarations page for the governing terms and conditions. If there is any conflict between this summary and the policy, the policy controls.
Employment Practices
What this policy pays for.
Your lead engineer files a complaint alleging she was terminated in retaliation for reporting a hostile work environment. She sues for wrongful termination and gender discrimination.1
Your policy covers claims by employees alleging discrimination, harassment, retaliation, and wrongful termination. Defense costs, settlements, and judgments are covered up to your policy limit. Retaliation claims, where an employee alleges they were punished for reporting misconduct, are expressly covered.
A 58-year-old job applicant sues your company, alleging she was passed over for a role in favor of a less-qualified younger candidate, in violation of age discrimination laws.2
EPLI covers claims from job applicants, not just current or former employees. Failure-to-hire claims alleging discrimination based on age, race, gender, disability, or other protected characteristics are covered. Your policy pays for the defense and any resulting damages.
A customer alleges that your sales representative made sexually inappropriate comments during a product demonstration and files a complaint against your company.3
EPLI doesn't just cover claims from employees. Insuring Agreement B covers claims by third parties (customers, vendors, visitors) alleging harassment, discrimination, or other wrongful employment-related conduct by your employees during business interactions.
Scenario notes
EPLI is a claims-made policy with defense costs within limits. The claim must be first made during the policy period, and the employment practice at issue must have occurred after the retroactive date.
Job applicants are covered insureds under the policy. Claims alleging discriminatory hiring practices, failure to accommodate, or biased interviewing processes are within scope.
Third-party coverage (Insuring Agreement B) covers claims by non-employees alleging harassment, discrimination, or other covered wrongful acts by your employees in a business context. It does not cover general customer complaints or product liability claims.
Policy notes
Independent contractors are excluded from the definition of "Employee" under this policy. Claims by or about individuals classified as independent contractors are not covered. An endorsement is available to extend coverage to independent contractors. See add-ons below.
Wage and hour claims, including FLSA (Fair Labor Standards Act) misclassification, overtime disputes, and minimum wage claims, are excluded from the standard policy. If a single lawsuit includes both wage/hour and discrimination allegations, the discrimination portion remains covered; only the wage/hour portion is excluded. A defense-costs-only endorsement is available as an add-on. See below.
Workers' compensation claims, ERISA (Employee Retirement Income Security Act) claims, NLRA (National Labor Relations Act) violations, WARN Act (Worker Adjustment and Retraining Notification Act) claims, USERRA, and IRCA claims are excluded. Punitive damages are covered where permitted by the most favorable applicable jurisdiction.
Coverage applies to claims made and pursued in the United States, its territories, Puerto Rico, or Canada. Claims brought in other jurisdictions are not covered under the standard policy. Startups with international employees should discuss this limitation with their advisor.
The scenarios above are illustrative examples only and do not guarantee coverage for any specific claim. Actual coverage depends on the facts and circumstances of each claim and the specific terms of your issued policy. Results may differ based on policy endorsements, exclusions, limits, and applicable law.
EPLI, D&O, CGL each respond to a different claim trigger and coverage boundary.
What triggers it: A claim arising from the employment relationship: hiring, firing, workplace conditions, discrimination Who brings the claim: Employees, former employees, job applicants, or (under Insuring Agreement B) third parties Common scenario: An engineer is terminated and sues for discrimination and retaliation Key difference: Covers the employment relationship. If the claim is about how you treated someone as an employer, whether hiring, managing, or firing them, that's EPLI.
What triggers it: A claim that a director or officer made a wrongful management decision Who brings the claim: Investors, shareholders, regulators, or other stakeholders Common scenario: Series B investors sue the board for misleading projections Key difference: Covers management decisions. If the claim is about how the company was governed, how capital was raised, or how the board acted, that's D&O.
What triggers it: A physical-world incident, where someone gets hurt or their property gets damaged Who brings the claim: Visitors, clients, neighbors, or other third parties who interact with your physical space Common scenario: A visitor trips in your office and breaks their wrist Key difference: Covers physical harm. If no one was physically injured and no property was damaged, CGL doesn't apply.
Insuring Agreement A: Employee Claims responds when your lead engineer files a complaint alleging she was terminated in retaliation for reporting a hostile work environment. She sues for wrongful termination and gender discrimination.
EPLI is a claims-made policy with defense costs within limits. The claim must be first made during the policy period, and the employment practice at issue must have occurred after the retroactive date. Job applicants are covered insureds under the policy. Claims alleging discriminatory hiring practices, failure to accommodate, or biased interviewing processes are within scope.
Available add-ons include Wage & Hour Defense Costs Endorsement, Independent Contractors and Leased Workers Endorsement. Endorsements are required where noted and availability may vary by jurisdiction and underwriting.
The standard EPLI policy excludes wage and hour claims. This endorsement provides coverage for defense costs only, not indemnity, for claims alleging FLSA misclassification, overtime disputes, and similar wage/hour violations. For example: a class action alleges your company misclassified account executives as exempt employees. Defense costs are covered up to the endorsement sublimit; settlements and judgments are not. [Endorsement required]
Extends the definition of "Employee" to include independent contractors and leased workers. If your company relies on contractors and one of them brings a discrimination or harassment claim, this endorsement brings the claim within EPLI coverage. [Endorsement required]
EPLI is the operational policy for any company with employees. Layer in CGL, D&O, Fiduciary, and more. Modular coverage that grows with you.
Protects your business against third-party claims for bodily injury, property damage, and personal or advertising injury arising from your operations.
Protects against losses and claims resulting from data breaches, cyberattacks, and network security failures.
Covers claims alleging your technology products or services failed to perform as intended, causing financial harm to a client.
Covers claims made against company leaders for alleged wrongful acts in managing the business.
Protects against claims alleging wrongful termination, discrimination, harassment, or other employment-related issues.
Protects your company and plan fiduciaries against claims alleging mismanagement of employee benefit plans, including retirement and health plans.
Protects against claims arising from your published or distributed content, including allegations of defamation, copyright infringement, or invasion of privacy.
Provides liability coverage when employees use rented or personal vehicles for company business.
Key terms from the policy language and approved coverage summary.
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