Why small employers need EPLI more than big ones
Large companies have HR departments, counsel, and process. A 12-person company fires people by gut feel — and one wrongful-termination suit at $75K median defense cost can equal a quarter of profit. EPLI also typically includes third-party harassment coverage (customers harassing your staff), which is increasingly claimed.
- • Wage-and-hour claims are usually excluded — a major gap in California.
- • Defense costs are usually inside the limit: a $250K limit erodes fast.
- • Report claims immediately — late notice is the most common denial reason.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
How much does EPLI cost for a small business?
Roughly $800–2,500/year for 10–20 employees in standard states, and $3,000–6,000 in high-litigation states like California. Per-employee cost falls as headcount grows.
Does EPLI cover harassment claims?
Yes — harassment, discrimination, wrongful termination, and retaliation are the core coverages, including defense costs. Third-party harassment (by customers or vendors) needs an endorsement on some forms.
Is EPLI covered under my BOP or GL?
No. Employment claims are expressly excluded from general liability and BOP policies. EPLI is a standalone policy or a management-liability package endorsement.
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