Employment practices liability insurance (EPLI)

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 defence 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, bringing EPLI into convergence with algorithmic discrimination issues. For the underwriter, the country's legal culture and the insured's internal practices are major determinants of exposure.

A company sued for a dismissal deemed discriminatory can have its defence costs and the indemnity covered by its EPLI policy.

EPLI, responsabilité employeur, employment practices liability