phrase · also: EPLI
employment practices liability
In plain English
Covers claims by employees for harassment, discrimination, wrongful termination, retaliation, and similar.
Most employment claims are filed under EPLI, not D&O. Even baseless claims cost real money to defend — that's mostly what EPLI is buying you.
What it covers
Damages and defense costs for claims by employees alleging wrongful termination, discrimination (race, sex, age, disability, pregnancy, etc.), harassment, retaliation, and similar employment practice violations.
What it does not cover
It does NOT cover wage-and-hour violations on a standard form (you need a wage-and-hour endorsement, often with a sublimit). It also typically excludes ERISA claims.
Where it trips people up
Defense costs inside the limit vs. outside. On a $1M policy with defense inside the limit, every $100K of defense reduces what's left for settlement. Some EPLI forms put defense outside — premium is higher but the limit goes further.
The technical version
Coverage for damages and defense costs arising from wrongful employment practices, including wrongful termination, discrimination, harassment, and retaliation, typically written on a claims-made basis.