Employment practices liability insurance (EPLI)
Cover for employment practices disputes: discrimination, harassment, wrongful dismissal.
Employment practices liability insurance, designated by the acronym EPLI, covers claims against a company and its directors over their personnel management practices: discrimination, harassment, wrongful dismissal, breach of equal treatment, retaliation. It covers defense costs and indemnities, in an area where litigation is particularly developed in some countries, notably the United States. The risk has evolved with growing sensitivity to harassment and discrimination issues, the rise of class actions and the associated reputational exposure. The widespread use of artificial intelligence in recruitment and career management adds a new dimension: a discriminatory algorithmic decision can engage the employer's liability, and the EPLI policy then answers for a discrimination committed by software. For the underwriter, the country's legal culture and the insured's internal practices are major determinants of exposure.
Textbook case: a company sued for a dismissal deemed discriminatory can have its defense costs and the indemnity covered by its EPLI policy.
EPLI, employment practices liability, EPL
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