Employment Practices Liability (EPLI) Insurance Complete Guide

Whether it’s a hospital or an independent practice, every health care entity should seriously consider ELPI. Employment Practices Liability Insurance (EPLI) protects you against allegations of discrimination, wrongful termination and sexual harassment of employees. EPLI includes coverage for defense costs and damages related to various employment-related claims which includes workplace harassment and retaliation.

Who is covered?

The health care entity; Appointed Directors and Officers (current & former), any employees (Current & Former) including independent contractors, leased employee and volunteers.

What types of claims are covered?

EPLI policies cover wrongful acts directed against any former employee or even employment applicant arising out of an employment relationship: Discrimination, Harassment, Wrongful Termination and Retaliation.

  • Discrimination - race, gender, regliion, age, national origin, disability
  • Harassment - sexual, other
  • Wrongful termination - breach of employment contract, demotion, failure to hire/promote, retaliation, wrongful discipline/evaluation
  • Retaliation - whistleblower actions, other
  • Family and Medical Leave Act (FMLA)

Depending on the policy, it covers defense expenses like multiplied and punitive damages (depending upon state) for these employee categories:

  • Full-time and part-time
  • Temporary
  • Seasonal
  • “Leased” or “loaned,”
  • Independent contractors

Some of the most common EPLI claims in the healthcare industry include:

  • Pregnancy Discrimination
  • Illegal Background Check
  • Unpaid Interns
  • Genetic Discrimination

What prior acts are covered?

Incidents that occurred any time before the policy effective date should be included coverage for claims made during the policy period. Claims are not covered when directors and managers had reason to believe a past wrongful act could be expected to give rise to a claim.

What are the limits of liability?

Coverage is based on a claims made and reported basis with defense expenses included within the limits. Below are the limits of liability with varying rentention starting at

  • $10,000
  • $500,000
  • $1,000,000
  • $2,000,000
  • $3,000,000