Employment-related claims are on the rise, and small and medium-sized businesses are especially at risk. Learn how EPLI coverage from PrestigePEO helps protect your business from legal and financial exposure while delivering proactive HR support and compliance guidance.
What would happen if a former employee filed a claim against your business tomorrow?
In today’s litigious environment, that scenario isn’t far-fetched. A recent survey found that 40% of small to medium-sized businesses (SMBs) have already faced lawsuits, and 59% are concerned about being targeted by employee claims. Even a single allegation—whether it’s wrongful termination, workplace harassment, or discrimination—can derail operations, drain financial resources, and seriously damage your reputation.
In 2024 alone, employee litigation claims cost U.S. businesses more than $40 million. For SMBs without in-house legal teams or dedicated HR departments, these risks are even greater. That’s why Employment Practices Liability Insurance (EPLI) is no longer optional—it’s essential.
At PrestigePEO, we empower SMBs to stay protected by offering EPLI coverage as part of a comprehensive HR solution. That includes expert support in compliance, proactive risk management, and everyday employee relations—so you’re not just covered if something goes wrong, you’re also better prepared to prevent it from happening in the first place.
In this article, you’ll learn:
- What EPLI is and the types of claims it covers
- Why EPLI is especially critical for SMBs
- How PrestigePEO includes EPLI as part of a full-service HR and compliance strategy
- The added value of ongoing risk management and employee support
Whether you’re a business owner, operations leader, or a health insurance broker supporting SMB clients, this guide will help you understand why EPLI should be a core part of your protection plan—and how PrestigePEO makes it simple to secure the coverage and guidance you need.
Understanding Employment Practices Liability Insurance
Small and medium-sized businesses (SMBs) typically carry several types of commercial insurance, such as general liability or property coverage. But those policies do not address one of today’s most significant business risks—employee-related claims. That’s where Employment Practices Liability Insurance (EPLI) comes in.
EPLI is a specialized type of coverage that protects SMBs against claims related to employment practices, including hiring decisions, terminations, promotions, disciplinary actions, and workplace conduct. EPLI helps cover legal defense costs, settlements, and judgments, making it a key component of a comprehensive risk management strategy.
Non-compliance can lead to costly litigation, whether from wage disputes, discrimination claims, or workplace safety violations. Defending against these legal challenges results in substantial legal fees, settlements, and potential court-ordered damages, draining company resources.
Examples of employment-related
claims EPLI may cover:
- Wrongful Termination: Allegations of unlawful dismissal or termination that violate company policy or employment law
- Discrimination: Claims of unfair treatment based on race, gender, age, religion, disability, national origin, or other protected characteristics
- Harassment: Allegations of a hostile work environment, including sexual harassment or inappropriate conduct
- Retaliation: Claims from employees who believe they were penalized for reporting misconduct or participating in an investigation
- Failure to Hire or Promote: Accusations of denied opportunities based on protected characteristics
- Breach of Contract: Alleged violations of written or implied employment agreements
- Defamation: Claims that false or damaging statements harmed an employee’s reputation
- Infliction of Emotional Distress: Claims of emotional or psychological harm resulting from employer actions
- Invasion of Privacy: Allegations of overreach or misuse of personal employee information
- Mismanagement of Employee Benefits: Claims that an employer mishandled health insurance, retirement plans, or other employee benefits
EPLI helps SMBs manage the financial impact of these claims, regardless of the outcome, while also supporting continuity of operations.
Why EPLI is Essential for SMBs
Many small business owners believe that employment-related claims only affect large businesses. In reality, SMBs are just as vulnerable. Without in-house legal counsel or dedicated HR resources, it can be more difficult to navigate complex workplace disputes.
EPLI helps fill that gap. Even a single employee claim can cost more than $250,000 in legal fees, settlements, and lost productivity. Without proper coverage, these costs can create significant financial strain. EPLI is a practical, strategic safeguard that helps SMBs protect their business and maintain focus on long-term growth.
PrestigePEO’s Role in Securing Your Business
At PrestigePEO, we understand the best practices regarding employment-related risks. EPLI coverage is included as part of our comprehensive suite of HR and risk management services, giving your business the protection it needs—along with the proactive support to help reduce potential liability.
Comprehensive EPLI Coverage
EPLI through PrestigePEO offers more than just insurance—it provides peace of mind. Our EPLI solutions help SMBs reduce exposure to costly legal claims while supporting long-term business continuity.
With EPLI coverage from PrestigePEO, your business benefits from:
- Financial Protection: Coverage for legal defense costs, settlements, and judgments related to employment-related claims
- HR and Compliance Guidance: Ongoing support from certified HR professionals to help address workplace issues and maintain compliance with federal, state, and local employment laws
- Tailored Coverage Options: EPLI solutions are designed to meet the unique needs of SMBs across a wide range of industries
Enhanced Risk Management Guidance
While having EPLI coverage is an important safeguard, preventing claims before they happen is even more effective. PrestigePEO goes beyond insurance coverage by providing proactive risk management support to help businesses foster a compliant and respectful workplace.
Our team works directly with your business to provide:
- Employee Handbook Development: We help create and maintain customized, legally compliant employee handbooks that clearly outline workplace policies, employee rights, and procedures for resolving disputes.
- Workplace Harassment Prevention Programs: We support the implementation of workplace training and policies that help reduce the risk of harassment and discrimination claims.
- Compliance Assistance: Our HR professionals stay up to date on evolving federal, state, and local employment laws, so your business stays ahead of potential risk.
Benefits of Partnering with PrestigePEO
Partnering with PrestigePEO gives small and medium-sized businesses (SMBs) access to more than just EPLI coverage. Our comprehensive suite of HR services is designed to protect your business, support your employees, and reduce legal and administrative burdens. From compliance to employee training, we deliver the tools and expertise to help your business thrive.
Stronger Risk Management for Your Business
Navigating employment laws and workplace regulations can be overwhelming, but you don’t have to do it alone. PrestigePEO simplifies compliance and risk mitigation with:
- Expert guidance on employment law: Our certified HR professionals stay current on state and federal regulations to help you stay compliant.
- Proactive risk reduction: We work with you to address potential issues before they become claims or disputes.
- Tailored HR support: Our services are designed to meet the specific needs of your business, industry, and workforce.
Comprehensive Support for Employers and Employees
Beyond risk management, PrestigePEO provides a wide range of HR services designed to improve business operations and employee satisfaction.
- Direct employer and employee support: Our team can assist with labor law inquiries, employee relations, and workplace best practices.
- HR Technology and resources: We provide access to cutting-edge HR technology, making it easier to manage employee records, taxes, payroll, and compliance requirements.
- Employee training and development: We offer training programs to educate employees on workplace policies, ethical behavior, and legal protections, fostering a positive and inclusive work environment.
PrestigePEO: A Strategic Partner in Long-Term Business Protection
Employment-related risks evolve as your business grows—and so should your protection plan. At PrestigePEO, we don’t just provide EPLI coverage; we become a long-term partner in strengthening your workplace, safeguarding your operations, and supporting your people.
- Integrated support that grows with you: As businesses expand, HR and compliance needs become more complex. PrestigePEO delivers scalable solutions that adapt to workforce changes, new regulations and shifting risk factors, ensuring your business is protected today and prepared for tomorrow.
- A foundation for a stronger workplace culture: Proactive risk management is about more than avoiding claims—it’s about building trust. With the right policies, training, and communication in place, our clients foster inclusive, respectful environments that support retention, morale, and productivity.
- Ongoing risk monitoring and policy updates: Our team stays ahead of legal and regulatory trends, helping your business implement timely updates to workplace policies and procedures. This continuous guidance helps reduce liability and promotes confidence among your leadership and employees alike.
We believe that prevention is better than a cure when it comes to employment-related claims. That’s why we offer comprehensive EPLI coverage, proactive risk management solutions, and expert HR support. Our team is committed to helping SMBs minimize employment-related risks while fostering a safe and compliant workplace.
Don’t wait until a claim threatens your business.
Contact PrestigePEO to learn more about our EPLI solutions and how we can help safeguard your company’s future.
