Cost guide
How Much Does Employment Practices Liability Insurance Cost?
EPLI premiums are typically driven by employee count, industry, location, and prior claims, since wrongful termination and harassment claims can be costly to defend.
EPLI premium is rated primarily on employee count, industry, state or venue, and prior employment claims, with limits and retention rounding out the price. States with employee-friendly litigation environments cost more per employee. Documented handbooks, manager training, and consistent termination procedures earn credits and reduce the chance of a claim.
Employment practices liability insurance, commonly called EPLI, covers claims from employees alleging wrongful termination, discrimination, harassment, retaliation, and other employment-related issues. Because these claims often involve significant legal defense costs even when ultimately unfounded, EPLI has become a common coverage for businesses of nearly every size.
Pricing typically starts with the number of employees, since a larger workforce generally means more potential claimants and a higher statistical likelihood of an employment dispute arising in any given year. From there, industry, employee turnover rate, geographic location, and the presence of documented HR policies all factor into the final rate.
Small businesses with a handful of employees and no claims history often pay a modest annual premium, while larger employers, or those in industries with higher turnover such as retail and hospitality, typically see meaningfully higher costs due to increased claim frequency.
Average cost benchmarks
- Businesses with fewer than 10 employees commonly see EPLI premiums between $500 and $1,500 annually.
- Mid-sized employers with 10 to 50 employees often range from $1,200 to $4,000 per year depending on industry and turnover.
- Larger employers with 50 to 100 employees frequently pay $3,500 to $10,000 or more depending on claims history.
- High-turnover industries like retail, hospitality, and staffing typically pay above-average rates compared to professional office environments.
- Standard limits of $1,000,000 per claim are common, with defense costs often included within, rather than in addition to, that limit.
Benchmarks are illustrative and not a quote. Your premium depends on your state, carrier, limits, and loss history.
What drives your premium
Number of employees
EPLI is typically rated in part on headcount, since a larger workforce generally creates more opportunities for an employment-related dispute to arise over the course of a policy year.
Industry and turnover rate
Industries with historically higher turnover, such as retail, hospitality, and staffing, often see higher rates than professional services or office-based businesses with more stable workforces.
HR policies and documentation
Businesses with a written employee handbook, documented disciplinary procedures, and clear anti-harassment policies often present lower risk to underwriters and may qualify for more favorable pricing.
Location and applicable employment laws
States and cities with more expansive employment protections and higher litigation rates typically see higher EPLI rates than jurisdictions with fewer employment-related statutes and lower claim frequency.
Claims and complaint history
A prior EEOC charge, lawsuit, or internal complaint pattern typically signals elevated risk to underwriters and often results in higher premium or more restrictive terms at renewal.
Management structure and hiring practices
Businesses with formal hiring, onboarding, and termination procedures, including documented performance reviews, are often viewed more favorably than those relying on informal or inconsistent processes.
Limits and retention selected
Higher per-claim limits and lower retentions generally increase premium, and many businesses work with an agent to select a limit appropriate to their workforce size and industry risk.
Examples by business size
| Business profile | Estimated annual premium |
|---|---|
Small professional office 8 employees, low turnover, documented HR policies Stable workforce and clear policies support favorable pricing. | $500 – $1,200 / yr |
Retail store 20 employees, moderate turnover, seasonal hiring Higher turnover and part-time staff increase claim frequency risk. | $1,500 – $3,500 / yr |
Restaurant group 60 employees across 3 locations, high turnover Multiple locations and high turnover industry drive cost upward. | $3,500 – $8,000 / yr |
Growing tech company 45 employees, rapid hiring, no prior claims Rapid growth phase often reviewed closely despite clean claims history. | $2,500 – $6,000 / yr |
Ways to lower what you pay
Maintain a written employee handbook
A clear, regularly updated handbook covering conduct expectations, complaint procedures, and disciplinary policies is often viewed favorably by underwriters and can support better pricing.
Document performance and disciplinary actions
Keeping consistent, written records of performance reviews and disciplinary steps can help defend against wrongful termination claims and is often considered a positive underwriting factor.
Provide harassment and discrimination training
Regular training for managers and staff on appropriate workplace conduct is commonly requested by underwriters and can reduce both claim frequency and severity over time.
Use a consistent hiring and termination process
Applying documented, consistent procedures across all employees, rather than case-by-case decisions, typically reduces the risk of claims alleging unequal treatment.
Consult legal counsel before difficult terminations
Reviewing higher-risk termination decisions with an employment attorney before acting can reduce the likelihood of a claim, which many carriers view favorably over time.
Work with an agent to select an appropriate limit and retention
Because claim costs vary significantly by size of workforce and industry, comparing options with an experienced agent often helps balance adequate protection with manageable premium.
Frequently asked questions
Ready to see your options?
One application. Up to 10 competing quotes. Answer a few questions and we will shop your business to our A-rated carrier network, then a licensed agent walks you through the options.