• Jul 08, 2025
• By Brian

EPLI (Employment Practices Liability Insurance) Checklist

Employment Practices Liability Insurance (EPLI) protects businesses against claims made by employees alleging wrongful employment practices. As workplace-related lawsuits continue to rise, having a comprehensive EPLI policy—and ensuring compliance with best practices—is essential for risk management. Below is a checklist to help businesses evaluate their EPLI coverage and employment practices.

1. Review Your EPLI Policy Coverage

• Does the policy cover claims such as discrimination, harassment, wrongful termination, and retaliation?
• Are both current and former employees included in the coverage?
• Does the policy extend to third-party claims (e.g., clients or vendors)?
• What are the policy limits, deductibles, and exclusions?

2. Assess Workplace Policies and Procedures

• Are anti-discrimination and anti-harassment policies clearly documented and communicated?
• Is there a formal complaint procedure for employees to report issues?
• Are managers trained on proper hiring, firing, and disciplinary actions?
• Are employment contracts, handbooks, and policies reviewed by legal counsel?

3. Implement Employee Training Programs

• Do employees receive regular training on workplace conduct, diversity, and inclusion?
• Are managers trained on recognizing and preventing harassment and discrimination?
• Is training documented and updated to reflect current laws and regulations?

4. Maintain Proper Documentation

• Are all employment decisions (hiring, promotions, terminations) well-documented?
• Are employee complaints and investigations recorded and stored securely?
• Is performance feedback documented and shared with employees regularly?

5. Conduct Regular Compliance Audits

• Are employment practices reviewed periodically for legal compliance?
• Are wage and hour laws, FMLA, ADA, and other regulations being followed?
• Are background checks and hiring practices non-discriminatory?

6. Prepare for Claims and Legal Defense

• Does the company have a response plan for employment-related claims?
• Are HR and legal teams prepared to handle investigations?
• Does the EPLI policy cover legal defense costs?

7. Evaluate the Need for Additional Coverage

• Should the policy include coverage for punitive damages (where permitted)?
• Is standalone EPLI coverage necessary, or can it be bundled with other policies?
• Does the company operate in multiple states with varying employment laws?

Final Thoughts: EPLI is a critical safeguard for businesses, but insurance alone is not enough. Proactive risk management—through strong policies, training, and documentation—can help prevent costly claims. Regularly reviewing this checklist ensures that your business remains protected against employment-related risks.