Preventing EPLI Claims


More than 76,000 workplace discrimination charges were filed in 2018 with the U.S. Equal Employment Opportunity Commission (EEOC). During 2018, the EEOC secured $505M in restitution to victims of workplace discrimination. The agency also received more than 7,600 sexual harassment charges - a 13.6 percent increase from 2017 - and obtained $56.6 million in monetary benefits for victims of sexual harassment. These amounts do not include legal fees incurred by the employers involved in these cases.

Employment Practices Liability Insurance, known as EPL insurance or EPLI, provides coverage to employers against claims made by employees alleging: discrimination, wrongful termination, or harassment. Read below to learn about the types of claims EPL insurance covers and the resources PHLY offers policyholders to help reduce the risk of an EPL claim.

What Types of Claims Does Employment Practices Liability Insurance Cover?


Examples of EPL claims include the following:

Sexual Harassment and Wrongful Termination: $1 Million
Several female employees complained the CEO was sexually harassing them. The company's president proceeded to investigate the complaints. Within one month of the start of the investigation, the president was terminated by the CEO. The female employees filed a sexual harassment suit against the CEO. The president filed a separate wrongful termination suit.

Age Discrimination: $540,000
A 62-year-old sales representative was terminated for failing to meet his sales quota. Despite layoffs and cutbacks, there was no documentation showing the plaintiff was a poor performer. The sales rep sued alleging he was fired because of his age.

Racial Discrimination: $200,000
A group of applicants sued a private retail store for ethnic and racial discrimination after learning they had all be denied employment strictly based on their race and ethnic background.

Minimizing the Risk and Impact of Employment Practices Liability Claims


To help reduce the likelihood of an EPL claim, and reduce the risk if a claim is filed, PHLY has partnered with In2vate to provide employment practices solutions to our policyholders.

In2vate is an online platform for organizations looking to ease their employment practices administrative oversight, better control their EPL exposure, and provide an affirmative defense in the event an EPL claim arises. PHLY makes In2vate available for all policyholders, at no additional cost.

More than 19,000 users currently subscribe to In2vate through PHLY. Through In2vate's website, PHLY insureds have access to:

  • E-training on topics such as sexual harassment and discrimination
  • Best practices, such as a model employee handbook, weekly best management practices, and bi-weekly HR workplace bulletins
  • EPL tools like self-assessments, a library of workplace-related articles, and workplace scenarios to guide effective EPL practices
No organization wants employment practices incidents in their workplace. Even unjustified allegations can result in distractions, productivity loss, and potential hits to a company's reputation. In2vate can help PHLY customers operate within the legal employment parameters and have documentation of their efforts.

For more information on In2vate resources and how to subscribe, go to www.in2vate.com/philadelphia.



IMPORTANT NOTICE - The information and suggestions presented by Philadelphia Indemnity Insurance Company are for your consideration in your loss prevention efforts. They are not intended to be complete or definitive in identifying all hazards associated with your business, preventing workplace accidents, or complying with any safety related, or other, laws or regulations. You are encouraged to alter them to fit the specific hazards of your business and to have your legal counsel review all of your plans and company policies.

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