Employment practices liability (EPL)

Published 2026-06-25 · by Brokly

In plain terms: Covers claims by employees that the business broke employment law — discrimination, harassment, retaliation, or wrongful termination.

Why it matters to you

These claims come from your own current or former staff, and a general liability policy excludes them. Even a claim with no merit runs up defense costs, which is why owners lean on this coverage once they start hiring.

Where you’ll see it

Often bundled into a management-liability or business owner's package rather than bought alone. Don't confuse it with employee benefits liability — EPL is about how you treat employees, not mistakes administering their benefits.

Related terms

Definitions describe how policies are typically structured — exact terms live in the policy. Not legal or compliance advice.