EPLI (employment practices liability insurance), defined

Sold standalone or as an endorsement to a business owners or D&O policy. It is claims-made and usually includes a deductible per claim, a duty to defend, and a hotline or handbook review that carriers offer to reduce claims. Wage and hour disputes are commonly excluded or given a small defense-only sublimit; bodily injury, workers compensation and intentional acts proven in court are excluded. Third-party coverage, for harassment claims by customers or vendors, is an add-on. Premium depends on headcount, state, industry, turnover and whether the employer has written policies and training. Even a claim that goes nowhere costs money to answer, which is the main reason small employers buy it.