Employment practices liability insurance (EPLI) responds to claims such as discrimination, sexual harassment and wrongful termination, an exposure that general liability insurance generally does not cover.[1] For a small US employer, picking a carrier matters less than comparing the policy forms. Progressive Commercial sells EPLI as an endorsement to its general liability or business owners policies.[5] Rockford Mutual is a regional mutual insurer that sells through independent agencies in Illinois, Wisconsin and Indiana.[7] This guide uses both as examples of how to compare EPLI quotes line by line.
What EPLI covers
The Insurance Information Institute (Triple-I) describes EPLI as covering claims by employees, former employees and job candidates, and protecting the company, its directors and officers, and current and former employees.[1] Some policies also extend to seasonal employees, leased employees and independent contractors.[1] Triple-I lists legal costs, settlements and judgments for claims such as:[1]
- discrimination based on age, race, gender and other factors;
- sexual harassment;
- wrongful termination, including constructive discharge and retaliatory discharge;
- breach of employment contract;
- failure to employ or promote, and wrongful discipline or demotion;
- mismanagement of employee benefits, defamation and privacy violations; and
- violations of the Family and Medical Leave Act or similar laws.
EPLI can be bought as a stand-alone policy or added as an endorsement to a business owners policy (BOP) or commercial package policy, and Triple-I cautions that package versions may come with more limits and exclusions.[1] That point matters whenever an EPLI quote arrives as part of a BOP rather than as its own policy.
What EPLI commonly leaves out
According to Triple-I, most EPLI policies exclude violations of the National Labor Relations Act, the WARN Act, OSHA and ERISA, as well as claims under workers compensation laws; EPLI also does not pay punitive damages or claims from criminal acts.[1] Privacy violations from a computer breach may also fall outside EPLI.[1]
Wage-and-hour disputes are a separate gap to raise with the broker. A law-firm analysis reports that Fair Labor Standards Act claims, such as unpaid overtime or misclassifying a worker as an independent contractor, typically sit outside EPLI, with limited defense-cost protection sometimes available for purchase.[4]
Why US employers pay attention to employment claims
The US Equal Employment Opportunity Commission (EEOC) reported that in fiscal year 2025 it processed 88,201 new discrimination charges, roughly level with fiscal year 2024.[2][9] In the same year it secured $660 million for 17,680 victims of employment discrimination, including $528 million through its pre-litigation process of mediation, conciliation and settlements.[2][9]
Size alone does not remove the exposure. Under Title VII of the Civil Rights Act, an “employer” is a business with fifteen or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year.[3] Most federal anti-discrimination statutes apply only to employers with 15 or more employees, but state laws can reach employers with as few as one employee, depending on the claim.[4]
What Progressive Commercial publishes
- How it is sold: Progressive says EPLI can be added as an endorsement to an existing general liability policy or BOP.[5]
- What it describes: Its page says EPLI protects businesses against employment claims including discrimination, harassment and wrongful termination, and may help whether or not the claim is legitimate.[5]
- What drives price: Progressive lists number of employees, employee turnover and claims history, and says companies with higher turnover might pay more.[5] It does not publish a rate.
- Reporting after the policy ends: Progressive separately explains that an extended reporting period, or tail, is an add-on to a claims-made policy that gives extra time to report claims after the policy ends, as long as the incident happened while coverage was active.[6]
What Rockford Mutual publishes
- Where it operates: Rockford Mutual says it is backed by independent agencies across Illinois, Wisconsin and Indiana.[7] An employer with staff in other states should ask the agent whether every work location can be insured.
- How to get terms: Rockford Mutual publishes a consumer explainer on EPLI on its blog.[8] A blog post is not a policy form, so ask the agent for the specimen EPLI form or endorsement and the declarations page that would apply to your business.
The carrier pages cited here are summaries rather than policy wording, so the comparison below is built on questions rather than conclusions.
Questions to ask before comparing quotes
Ask the agent or broker to answer each question in writing and to name the form and section that controls the answer.
Claims-made basis and retroactive date
Most EPLI policies are claims-made, meaning the policy must be in force both when the event took place and when the claim is filed, unless a retroactive date extends coverage to earlier incidents.[1] Occurrence-based EPLI also exists and responds to events during the policy period even if the suit is filed after the policy lapses.[1]
- Ask whether the quote is claims-made or occurrence.
- Ask what retroactive date applies, and whether switching carriers would move it forward.
- Ask whether an extended reporting period can be bought, for how long and at what price.[6]
Defense: who runs it and how it is paid
Under a duty-to-defend provision the insurer manages the defense; under a non-duty-to-defend provision the insured does.[1] The law-firm analysis adds that a duty-to-defend insurer usually controls counsel selection and strategy, while a reimbursement policy leaves more control with the company, and that a mutual selection of counsel endorsement may be negotiable.[4] If your preferred counsel charges more than the insurer’s panel rates, you may have to share the difference.[4]
- Ask whether the policy has a duty to defend or a duty to reimburse.
- Ask whether defense costs sit inside the limit, reducing what is left for a settlement, or are paid in addition to it.
- Ask whether you can choose or approve defense counsel, and at what hourly rates.
Consent to settle
- Ask whether the insurer needs your consent to settle a claim.
- Ask what happens to coverage for later defense costs and any judgment if you refuse a settlement the insurer recommends.
Retention or deductible
A self-insured retention is paid by the business before the insurer pays anything, while a deductible is subtracted from the insurer’s payment; a higher retention usually lowers the premium.[4]
- Ask which one applies, the amount, and whether it differs for harassment, discrimination or class claims.
Wage-and-hour and other carve-outs
- Ask whether Fair Labor Standards Act and state wage-and-hour claims are excluded entirely, or whether a defense-cost sublimit is available.[4]
- Ask how a lawsuit that mixes covered allegations, such as retaliation, with excluded ones, such as unpaid overtime, would be handled.
- Ask whether independent contractors, leased and seasonal workers are counted as insured or as claimants.[1]
Third-party claims
EPLI policies can extend to third parties who claim the employer engaged in wrongful conduct.[4]
- Ask whether harassment or discrimination claims from customers, clients or vendors are included, offered as an option or excluded.
- Ask whether third-party claims carry a separate, lower limit.
Notice duties
Untimely notice can put coverage at risk, and an employer can “park” a potential claim by notifying the insurer of facts that might give rise to a future claim, so that a later claim is handled as if reported in the earlier policy period.[4]
- Ask what counts as a claim, the reporting deadline and the required delivery method.
- Ask whether notice of circumstances is allowed and what it must contain.
How to get quotes you can actually compare
Send both agents the same facts and request the same structure, then compare forms rather than headline premiums:
- legal entity names, work locations by state, and full-time, part-time, seasonal and contractor headcounts;
- recent employee turnover and prior employment claims or charges, which Progressive names as pricing factors;[5]
- the same per-claim and aggregate limit, and the same retention or deductible;
- whether defense costs are inside or outside the limit;
- whether third-party coverage and any wage-and-hour defense sublimit are included; and
- the retroactive date and extended reporting period you want.
Each proposal should name the issuing company, the policy and endorsement form numbers, premium, taxes and fees, and quote expiration date. To lower the chance of a claim in the first place, Triple-I recommends written workplace policies, management training, careful hiring, clear job descriptions, regular reviews and documentation of complaints and investigations.[1]
Bottom line
Progressive offers EPLI as an add-on to general liability or a BOP and describes the factors that drive its price.[5] Rockford Mutual is a regional option for employers in Illinois, Wisconsin and Indiana, available through independent agencies.[7] Which one fits better depends on the written answers to the questions above, especially claims-made timing, defense costs, consent to settle, wage-and-hour carve-outs and third-party claims.
Frequently Asked Questions
- Does general liability insurance cover employee harassment or wrongful termination claims?
- Usually not. The Insurance Information Institute says employment practices liability generally sits outside general liability insurance and can be bought as a stand-alone policy or as an endorsement to a business owners policy. Check your own policy wording with your agent.
- Is EPLI usually claims-made or occurrence?
- The Insurance Information Institute says most EPLI policies are claims-made, so the policy must be in force when the event happened and when the claim is filed, unless a retroactive date extends coverage to earlier incidents. Ask your agent which basis and retroactive date your quote uses.
- Does EPLI pay wage-and-hour or overtime claims?
- Usually not. A law-firm analysis reports that Fair Labor Standards Act claims such as unpaid overtime typically sit outside EPLI, though limited defense-cost protection is sometimes sold. Ask whether the quote excludes wage-and-hour claims entirely or offers a defense sublimit.
- Can I buy Rockford Mutual EPLI outside the Midwest?
- Rockford Mutual says it works through independent agencies in Illinois, Wisconsin and Indiana. Employers with locations elsewhere should ask an agent whether every work location can be insured.
- What affects the price of an EPLI quote?
- Progressive lists number of employees, employee turnover and claims history. It does not publish a rate, so compare quotes built on the same limits and retention.
References
- Employment practices liability insurance | Insurance Information Institute (iii.org)
- EEOC Highlights Record-Breaking Results in Agency Reports (FY 2025) (eeoc.gov)
- 42 U.S. Code § 2000e – Definitions (Title VII) | Legal Information Institute (cornell.edu)
- Five Things You Should Know About Employment Practices Liability Insurance | National Law Review (natlawreview.com)
- Employment Practices Liability Insurance (EPLI) | Progressive Commercial (progressivecommercial.com)
- Extended Reporting Period Insurance | Progressive Commercial (progressivecommercial.com)
- Home, Auto, Business and Farmowners Insurance | Rockford Mutual Insurance Company (rockfordmutual.com)
- Understanding Employment Practices Liability Insurance (EPLI) | Rockford Mutual Insurance Company (rockfordmutual.com)
- EEOC Highlights Record-Breaking Results in Agency Reports (reprint of EEOC release) | Southeast ADA Center (adasoutheast.org)