Employment Practices Liability Insurance (EPLI) Insurance: Average Premiums & Pricing Factors

How much does Employment Practices Liability Insurance (EPLI) insurance cost in 2026? See average annual premiums by business size and revenue, plus the 6 factors that most affect your rate.

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A premium illustration is not an offer for your business. Headcount, employee locations, operations, HR procedures, loss history, the requested limit and the retention all form part of the underwriting review.

Use Step 1 to save your contact and workforce basics. Continue to the established EPLI application page to select limits, review the coverage summary and attach supporting documents. Coverage is subject to carrier underwriting and policy terms.

Employment practices liability insurance (EPLI) covers businesses against claims by employees alleging wrongful termination, discrimination, sexual harassment, retaliation, and other employment-related violations. Essential for any business with employees.

What You Need to Know

EPLI covers employers against claims alleging wrongful employment practices including discrimination (race, sex, age, disability), sexual harassment, wrongful termination, retaliation, and failure to promote. Legal defense costs alone average $75,000–$125,000 per claim before any settlement. EPLI is available as a standalone policy or as part of a management liability package. Premiums range from $1,500–$50,000+ annually depending on employee count, industry, and claims history.

Employment Practices Liability Insurance (EPLI) Cost by Business Size

Business Size	Annual Revenue	Typical Premium	Notes
Micro Business (1–9 employees)	Any	$1,500–$5,000/yr	Limited exposure. Higher per-employee rate due to small group. Standalone policy or BOP endorsement.
Small Business (10–49 employees)	Any	$3,000–$12,000/yr	Most common EPLI buyer segment. Rates highly variable by industry and state.
Mid-Size (50–250 employees)	Any	$8,000–$50,000/yr	Management liability package (D&O + EPLI + fiduciary) often most cost-effective structure.
Large (250+ employees)	Any	$25,000–$200,000+/yr	Dedicated EPLI policy with claims-made form. High-deductible programs common. Prior acts coverage important.

What Determines Your Premium?

Employee Count (High impact) — More employees = more potential claimants. Under 10 employees: $1,500–$5,000/yr. 50+ employees: $5,000–$25,000+/yr. 500+ employees: $20,000–$100,000+/yr.
Industry / Turnover Rate (High impact) — High-turnover industries (hospitality, retail, staffing) generate more employment claims. Staffing agencies and restaurants are the highest-risk EPLI categories.
Prior Claims History (Very High impact) — A prior EPLI claim — even one that was dismissed — can increase premiums 50–200% or result in specific coverage exclusions.
State of Operations (High impact) — California has the most plaintiff-friendly employment laws (FEHA, PAGA, CFRA). CA employers pay 40–80% more than equivalent businesses in most other states.
HR Practices Documentation (Medium impact) — Businesses with documented HR policies, training records, and employee handbooks typically receive credits of 10–20% and better coverage terms.
Deductible / Retention (Medium impact) — Higher retentions ($10,000–$50,000 per claim) reduce premium 15–40%. Retentions work best when the business has dedicated HR and legal resources to manage claims early.