Employment Practices Liability (EPLI)

What is EPLI for contractors?

Employment practices liability insurance (EPLI) protects your business when a current, former, or prospective employee claims discrimination, harassment, wrongful termination, retaliation, or similar workplace violations. These claims target how you hire, manage, and fire — not the work you build.

Construction crews mean hiring, layoffs between projects, and jobsite culture — a combination that produces real EPLI exposure even for well-run companies. Defense costs alone can run six figures, and standard general liability policies exclude these claims entirely.

What it covers

• Discrimination claims — allegations based on race, sex, age, religion, disability, or other protected classes.
• Harassment claims — including hostile work environment allegations against your company or supervisors.
• Wrongful termination — claims arising from firings and layoffs — common in project-based construction employment.
• Retaliation claims — allegations that an employee was punished for complaints or protected activity.
• Defense costs — attorney fees and settlements, which drive most EPLI claim costs.

Who needs it

Any contractor with employees — and exposure grows with headcount and turnover. Crew-based trades that staff up and down with project cycles, like general contractors, masonry, and landscaping companies, face the most frequent exposure. Claims can come from applicants you never hired, too.

How much does EPLI cost?

Premiums depend on employee count, turnover, your state, and claims history. For most small contractors it’s an affordable addition to the program relative to the six-figure defense costs it covers. Get quotes here.

Frequently asked questions

Doesn’t my general liability cover employee lawsuits?

No — GL excludes employment-related claims. EPLI is the only coverage designed for discrimination, harassment, and wrongful termination allegations.

Can a claim come from someone I never hired?

Yes — failure-to-hire discrimination claims from applicants are covered under EPLI, as are claims from former employees.

Does EPLI cover claims between employees?

EPLI responds to claims made against your business and management. Third-party EPLI extensions can also cover claims from customers or vendors alleging harassment by your employees.