EPL Statistics
$70,000
Average Attorney Costs
If a simple to file claim goes to court, expect over a year and $70,000 in expenses.
1 in 10
Private Companies face EPL Claim
You have just over a 10% chance of facing an EPL charge, and much higher in California.
42%
Claims against SMBs
42% of all EPL claims are filed against companies with less than 100 employees.
$464M
Damages awarded to 2 Plaintiffs
EPL Discrimination claims can affect even the largest of companies.
Average Cost of a Claim - $160,000
The average employment practices claim costs $160,000 - and it’s not just the payout. Legal defense, settlement, lost time, and reputational fallout add up fast.
EPL insurance covers the legal fees, settlements, and internal disruption that follow allegations of harassment, discrimination, wrongful termination, or retaliation - even if the claim has no merit.
California
The epicenter of employment litigation risk. Courts are employee-friendly, class actions are common, and claims often go to trial. As a result, many insurers apply higher retentions, reduce coverage, or refuse to write EPL policies in California altogether. Companies operating in the state need carefully negotiated terms - not default language.
Terminations
Wrongful Termination After Layoffs or Performance Management
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Startups often operate with minimal HR support and poor documentation.
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Downsizing during pivots, restructures, or runway extensions opens the door to retaliation and discrimination claims.
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Claims spike when underperformers are let go after raising complaints — even informal ones.
Tech Culture
Harassment & Toxic Culture Allegations
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Startup and tech culture still struggles with power dynamics, founder-led environments, and unstructured growth.
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Claims often involve hostile work environment, sexual harassment, or failure to act on complaints — especially where leadership ignored red flags.
What is EPL
Employment Practices Liability (EPL) Insurance safeguards your business and its leadership by covering legal fees, settlements, and related costs arising from employment-related claims. It is designed to protect against allegations of wrongful termination, discrimination, harassment, and other employment practices that can jeopardize both your financial stability and reputation.