Cost
How much does employment practices liability insurance cost in 2026?
Employment practices liability insurance pays to defend your business when an employee or job applicant claims discrimination, harassment, wrongful termination or a similar violation of their rights. Here is what it costs, what moves the price, what it leaves out and how to keep premiums down.
Typical EPLI costs
Insureon u2019s figures are medians for policies its small-business customers buy, which exclude the highest and lowest outliers. The median is about $257 a month. 38% of customers pay less than $200 a month, 33% pay between $200 and $400 and annual premiums run from around $750 to more than $14,000.
The deductible is part of the price. Insureon says the average deductible its customers choose for EPLI is $10,000. Pick a deductible you could pay in a crisis, because the insurer does not contribute until you have.
EPLI costs by industry
Industries with more employment claims pay more. Insureon reports professional service firms and healthcare facilities at the top of its range and nonprofits at the bottom.
| Business type | Average per month |
|---|---|
| Professional services | $342 |
| Healthcare facilities | $315 |
| All small businesses | $257 |
| Real estate | $149 |
| Nonprofits | $68 |
What drives your premium
Insurers look at how likely employee disputes are and how expensive they could get. Insureon lists these main factors:
- Number of employees: every hiring, promotion, discipline and firing decision is a potential claim.
- Industry: high-turnover and fast-growing fields such as retail and healthcare see more claims.
- Location: Insureon names California, New York, Massachusetts, Florida and Texas as states with higher EPLI costs.
- Employee turnover: frequent hiring and firing raises the odds of a claim.
- HR practices: written policies, a handbook, training and documented hiring and termination procedures lower your risk profile.
- Annual revenue: higher revenue usually means a higher premium.
- Limits, deductible and claims history: lower limits, higher deductibles and a clean record cost less.
Why small employers buy it
No state law requires EPLI, according to Insureon, but employment claims are common. The EEOC received 88,531 new discrimination charges in fiscal year 2024 and secured nearly $700 million for workers. Gen Re reports the count rose to 91,503 charges in fiscal 2025, with $660 million secured, and notes those figures exclude charges filed at the state level.
Federal discrimination laws enforced by the EEOC generally apply once you have 15 employees for at least 20 weeks in this year or last, or 20 employees for age discrimination. Smaller employers can still face claims under other laws, and a lawsuit costs money to defend even when you win.
What EPLI covers, and what it does not
EPLI pays defense costs, settlements and judgments for covered claims by employees, former employees and applicants, including those that start as an EEOC complaint. Check two policy features before you compare prices. IRMI notes that EPLI is written on a claims-made basis, so the policy must be active when a claim is made, and that defense costs usually reduce the limit available to pay a settlement.
| Claim | Usually covered by |
|---|---|
| Discrimination, harassment or wrongful termination | EPLI |
| Employee claims of defamation or invasion of privacy | EPLI |
| Employee injured on the job | Workers’ compensation and employer’s liability |
| Customer or vendor claims of slander or libel | General liability |
| Unpaid overtime or minimum wage | Usually excluded; some insurers sell defense-only coverage |
| Intentional or dishonest acts, bodily injury, property damage | Common EPLI exclusions |
Endorsement or standalone policy
Insureon says very small businesses often start by adding EPLI as an endorsement to a business owner’s policy or general liability policy, while companies with a few dozen employees often buy a standalone policy with higher limits. Compare the limits and terms, not just the price.
EPLI can also be bundled with directors and officers coverage in a management liability package, and Insureon notes many insurers discount policies bought together.
How to pay less for EPLI
Insureon says insurers generally want to see basic HR policies, employment applications, periodic performance reviews and no history of employment lawsuits. Showing those can improve both eligibility and price. A broker such as Florin can compare quotes from several insurers for the same limits and deductible.
- Put an employee handbook and written anti-harassment and anti-discrimination policies in place.
- Train managers and staff on harassment prevention, and respond to complaints promptly.
- Use consistent, documented procedures for hiring, discipline and termination.
- Choose the highest deductible you can comfortably pay.
- Bundle EPLI with a business owner’s policy or D&O coverage.
- Pay the annual premium in full if you can.
- Compare several insurers, since premiums for the same business vary widely.
Frequently asked questions
Is employment practices liability insurance required?
No state law requires it, according to Insureon. It is optional coverage that businesses with employees buy to pay the cost of employee lawsuits.
Does general liability cover lawsuits from employees?
Generally not for employment claims such as discrimination, harassment or wrongful termination. General liability covers claims from outsiders, and some insurers let you add EPLI to it as an endorsement.
Does EPLI cover wage and hour claims?
Usually not. SHRM reports that EPLI policies have historically excluded overtime and minimum wage claims, though some insurers offer defense-only coverage for them.
Do I need EPLI if I have fewer than 15 employees?
Federal EEOC laws generally start at 15 employees, or 20 for age discrimination, but smaller employers can still be sued under other laws. Insureon says very small businesses often start by adding EPLI to a business owner’s policy.
Figures are third-party estimates and examples, not quotes. Coverage depends on the policy terms and underwriting, and rules vary by state.