Insurance Defense and Coverage
Coverage Types
EPLI responds to employment-related claims including discrimination, harassment, retaliation, wrongful termination, and failure to promote. It is written on a claims-made basis with defense costs typically inside the limits.
Wage and hour claims are usually excluded or subject to a narrow sublimit.
Alternative Names:
EPLI, Employment Practices Coverage
Why it Matters?
The wage and hour exclusion is the practical gap, since collective actions under the Fair Labor Standards Act generate substantial exposure that EPLI typically does not cover beyond a defense sublimit. Consent-to-settle and panel counsel requirements are also common, and employers accustomed to selecting their own employment counsel often find the carrier's panel requirement restrictive at exactly the moment they want continuity.
Frequently Confused with
Related terms
Frequently asked questions
Does EPLI cover wage and hour claims?
Are punitive damages covered?
