Top 3 Reasons Your Company Needs EPLI

EPLI (Employment Practices Liability Insurance) provides employers with insurance coverage, including the cost of legal defense) in the event that the company ever faces discrimination, sexual harassment, wrongful termination, or any other employment-related claims.

Any working environment, big or small, can quickly become unstable without warning.  Here are the top 3 reasons you need to be concerned as a business owner, and why your organization needs EPLI:

  1. Claims against employers are continually on the rise. According to an article found on, 1 in 4 privately held companies is sued by their own employees.
  2. More than any other component of the employer/employee relationship, the firing or discharge of an employee has the potential to result in litigation. EPLI policies cover these claims by former employees who claim they were wrongfully terminated.
  3. As mentioned above, big or small, it can happen to any company, and the repercussions of these claims can be felt far beyond the office or the initial financial impact. They often make front page news stories, resulting in public relations nightmares, further harming your bottom line.

The cost of EPLI can be expensive, but companies who are engaged in a co-employment relationship with a PEO have the advantage of paying much lower EPLI rates—mainly because EPLI insurance costs are rated according to a company’s size and expected lawsuit risk. With rates depending heavily on the level of HR practices within an organization, PEOs are advantageous in that they reduce risk by offering expert services surrounding compliance and risk management.

But, depending on the size and policy needs of your company, a PEO-provided EPLI policy may not be your best option.  The best PEOs offer complimentary services that surround EPLI protection, including access to employment law attorneys and advice, background checks, firing/hiring assistance, training courses for business owners and/or managers, a minimum annual coverage of $1 million and easy per employee pricing.  Per employee pricing can be less competitive when compared to a traditional EPLI policy for larger companies and deductibles or per claim fees can create cash flow issues for a small company needing to access the policies benefits.  EPLI policy characteristics are classified for each vendor with whom PEO Advantage works and it is one of the 125 checkpoints used to select vendors who are best qualified to bid on the opportunity to provide PEO services for your company.

Your PEO benefits are waiting. Call 877-636-9525 or contact us today to find the best Professional Employer Organization and EPLI rates for your company. To learn more about our company, click here.


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