Business people conference and meeting in modern office.
Employment Practices Liability Insurance (EPLI)
EPLI protects your tech company when it’s accused of violating an employee’s rights.
Get advice tailored for tech entrepreneurs.
24 hrs
Access proof of insurance anytime.

What does employment practices liability insurance (ELPI) cover?

EPLI protects tech companies against lawsuits filed by employees claiming that their rights were violated.

Orange check mark.
Negligent handling of worker benefits
Orange check mark.
Sexual harassment in the workplace
Orange check mark.
Termination without legitimate cause
Orange check mark.
Discrimination
Orange check mark.
Breach of employment contract
Orange check mark.
Infringement on personal privacy

ELPI provides coverage for:

Negligent handling of worker benefits

EPLI covers a small tech company when an employee sues over mishandling of employee benefits, like health insurance or a 401k.

Example: An employer misrecords a software developer’s paid time off. She has unused days when she quits, but does not receive pay for them. She decides to sue her former employer, and EPLI covers the company’s legal costs.

Sexual harassment in the workplace

A tech business can rely on EPLI to cover legal costs when a worker sues for sexual harassment in the office.

Example: A director at a project management business receives inappropriate messages from a female colleague. He asks her to stop, and tells his supervisor about the issue when the messages continue. His supervisor does not report the activity and takes no action, so the director files a lawsuit against the company. Luckily, the company has employment practices liability insurance to pay for its legal counsel.

Termination without legitimate cause

EPLI protects small businesses when an employee feels as though they were relieved from their position for an invalid reason.

Example: A chief technology officer (CTO) at a cybersecurity firm instructs his team to put together a presentation for an important investor. His team shows up to the presentation unprepared. When it’s over, the company’s higher-ups schedule a meeting with the CTO and fire him because of the team’s performance. The CTO sues, claiming it was not his fault; the company is insured through its EPLI policy.

Discrimination

EPLI protects a company if it is accused of discrimination based on a legally protected class, such as age, gender, religion, race, or disability.

Example: A director at a web development company promotes an all-male team of specialists to work on a major project with the CEO, who has a reputation for favoring male employees. The most qualified employee in the department, a woman, is overlooked. She files a lawsuit against the company, and the EPLI covers the legal costs, including settlement.

Breach of employment contract

When a contract is signed, both parties need to live up to the terms of the contract. If an employee files suit for the company’s failure to fulfill their obligations under the contract, EPLI will cover the costs.

Example: A new digital marketing associate at a small tech company is promised a bonus if he increases the company’s social media followers by a certain percentage. The company and the employee sign a contract outlining the terms of the bonus. When the associate hits the goal, he’s given a warm congratulations, but his next paycheck doesn’t include the bonus. The employee sues the company for breach of employment contract, and EPLI covers the attorney’s fees.

Infringement on personal privacy

If an employee accuses their employer of breaching their personal privacy, EPLI will cover the associated legal costs.

Example: A tech business offers its employees a “wellness day,” and a network designer undergoes a health screening that includes a blood test to check cholesterol levels. Unbeknownst to the employee, the lab also conducts a drug test, and fires the designer for testing positive. The network designer sues, with numerous other employees signing on as co-plaintiffs. EPLI covers the costs of the suit and settlement.

Compare small business insurance quotes for your tech company

Employment practices liability insurance does not cover:

no coverage check mark

Worker injuries

no coverage check mark
Worker’s legal action surrounding the injuries
no coverage check mark

Third-party defamation suits

no coverage check mark
A lapse in professional duties

Worker injuries

Injuries that occur at work are covered by worker’s compensation insurance. This policy has the capacity to pay for the affected worker’s medical bills and lost wages.

Worker’s legal action surrounding the injuries

If an employee sues because they blame their employee for an injury or illness, a tech company will only be covered with employer’s liability insurance, which is typically included in a workers’ comp policy.

Third-party defamation suits

If someone outside of or unrelated to your company attempts to sue for libel or slander, a general liability insurance policy would be necessary for that company’s protection, not an EPLI policy.

A lapse in professional duties

A lapse in duty of care, also known as professional negligence, is covered by errors and omissions insurance (E&O). This policy is sometimes called professional liability insurance.

350,000+ small businesses protected
Save money by comparing insurance quotes from multiple carriers.
Not a tech business? We have you covered.
Powered by Insureon.
We partner with trusted A-rated insurance companies