What is EPLI?

• A. Coverage for employee life insurance.
• B. Specialized insurance coverage for employers who become the targets of work related lawsuits.
• C. A health insurance plan for employees.
• D. Auto liability coverage for employees' vehicles.

Answer: (B)

EPLI, or Employment Practices Liability Insurance, is specialized coverage that protects employers from losses caused by lawsuits and claims related to how they handle employees. It typically covers defense costs, settlements, and judgments for claims such as wrongful termination, discrimination, harassment, retaliation, and wage-and-hour disputes, among other employment-related issues. This type of policy helps a business manage the financial impact of employee lawsuits and investigations, rather than insuring the employees themselves.

It is not a life insurance policy for employees, not a standard health plan for staff, and not auto liability coverage for employees’ vehicles. EPLI specifically targets the employer’s risk from claims brought by current or former employees or applicants.