Employment practices liability insurance (EPLI) is a type of business insurance coverage which may cover legal costs in situations where your business is sued by an employee or contractor.

For instance, if one of your staff members takes legal action against your company, alleging discrimination based on race, gender, age, religion, or disability, your EPLI policy can cover your legal expenses, including attorney fees and potential settlements, up to the policy limit.

Typically offered as an optional add-on coverage to your existing business owners policy, EPLI's coverage options can vary. It's important to consult with your insurer about tailoring your coverage to meet your business needs.