Employment Practices Liability for law firms
Defends your firm against claims of wrongful termination, harassment, discrimination, and other workplace disputes brought by employees.
Overview
Employment Practices Liability Insurance (EPLI) covers the firm against claims made by current, former, or prospective employees alleging wrongful employment practices. Covered allegations include wrongful termination, sexual harassment, workplace discrimination based on protected characteristics, retaliation, wage and hour violations, failure to promote, and negligent hiring or supervision. EPLI pays for legal defense costs, settlements, and judgments arising from these claims. Policies are written on a claims-made basis and may include coverage for claims brought by third parties such as clients who allege harassment by firm employees.
Why it matters for law firms
Law firms face the same employment risks as any business, but the adversarial nature of legal work and high-pressure environments can amplify workplace tensions. Associate turnover, partner disputes over compensation, and the hierarchical structure of many firms create fertile ground for employment claims. Ironically, attorneys who advise clients on employment law are not immune from making the same mistakes in their own practices, and juries may hold law firms to a higher standard of knowledge.
Typical Limits
Small firms with fewer than 25 employees commonly carry $500,000 to $1,000,000 in EPLI coverage. Firms with 25 to 100 employees typically maintain $1,000,000 to $3,000,000 limits. Deductibles range from $2,500 to $25,000 per claim. Some policies offer separate defense cost limits that do not erode the indemnity limit, which is a valuable feature for firms expecting prolonged employment disputes.
Review your employment practices liability coverage
Find out if your current employment practices liability meets best practices for your firm size and practice areas.