Employment practices liability insurance (EPLI) is a specialized insurance policy that protects business against claims by employees alleging violations of their legal rights in the workplaces. EPLI typically covers legal costs, settlements, and judgments arising from employee claims related to: discrimination, harassment, wrongful termination, retaliation, breach of employment contract, defamation,  failure to promote or employ, invasion of privacy, etc.

Case Example: Discrimination Claims: Gender Pay Gap at Google. In 2021, Google settled a lawsuit for $118 million, alleging systemic gender pay discrimination against female employees in California. Plaintiffs claimed women were paid less than men in similar roles.