What Is EPLI Coverage?
Employment Practices Liability Insurance protects law firms against claims made by employees, former employees, and job applicants alleging wrongful employment practices. As employers, law firms face the same workplace risks as any business, plus heightened scrutiny given their role as legal advisors.
EPLI claims can be filed by attorneys, paralegals, administrative staff, and even summer associates. A single harassment allegation or wrongful termination suit can cost tens of thousands in defense alone, regardless of the outcome.
PSL Insurance Group offers EPLI coverage that addresses the specific employment dynamics of law firms, including partner-level disputes and the unique relationships within legal practice.
Common EPLI Claims in Law Firms
Law firms experience employment claims across all practice sizes. Common allegations include:
Discrimination: Claims based on race, gender, age, religion, disability, or sexual orientation in hiring, promotion, or compensation.
Sexual Harassment: Hostile work environment or quid pro quo harassment claims, which have increased significantly in recent years.
Wrongful Termination: Claims that an employee was fired in violation of law or implied contract terms.
Retaliation: Allegations that adverse action followed protected activity like reporting misconduct or filing complaints.
Wage and Hour: Disputes over overtime, classification, and compensation practices.
Why Law Firms Need EPLI
The legal industry presents unique employment risks that make EPLI coverage particularly important:
- High-Stress Environment: Demanding work cultures can contribute to workplace conflicts
- Partnership Dynamics: Complex relationships between equity partners, non-equity partners, and associates
- Billable Hour Pressure: Compensation structures that create wage and hour compliance challenges
- Competitive Recruitment: Lateral hiring practices that can lead to discrimination claims
EPLI provides defense costs and indemnity coverage, allowing your firm to respond to employment claims without depleting operating capital.
