EPLI iNSURANCE

In today’s litigious climate. While contractors aren’t always legally required to carry Employment Practices Liability Insurance (EPLI) or management liability insurance, having it can be a game-changer for protecting your business.

Why Contractors Should Consider EPLI

EPLI covers claims related to:

• Wrongful termination

• Discrimination

• Sexual harassment

• Retaliation

• Breach of contract

• Defamation and emotional distress

Even if you're a small contractor or use independent contractors, you're not immune. The EEOC secures over $400 million annually from employers due to employment-related claims, and even meritless lawsuits can rack up tens of thousands in legal fees.

⚠️ Standard EPLI policies often exclude independent contractors, so if you rely on them, you’ll need to ask your insurer about policy endorsements or specialized coverage.

What About Management Liability Insurance?

This broader category includes:

• Directors & Officers (D&O) coverage

• Fiduciary liability

• Cyber liability

• EPLI (often bundled)

If you manage a team, handle sensitive data, or make executive decisions, management liability insurance protects you from lawsuits tied to mismanagement, breach of fiduciary duty, or regulatory violations.

Bottom Line

If you:

• Hire employees or contractors

• Make hiring/firing decisions

• Manage payroll or benefits

• Operate in a regulated industry

…then yes, EPLI and management liability insurance are highly recommended. They’re not just for big corporations—they’re for smart contractors who want to stay protected.