In today’s workplace, even good employers can find themselves on the receiving end of a lawsuit. From wrongful termination claims to harassment allegations, employment practices lawsuits are on the rise—and they’re hitting businesses of all sizes across Colorado and beyond.
At Conexus Insurance Partners, we work with business owners, HR leaders, and CFOs to help them understand where they may be vulnerable—and how Employment Practices Liability Insurance (EPLI) can protect the organization and its leadership.
Why EPLI Matters Now More Than Ever
Employee lawsuits have grown steadily over the past decade—but recent trends are accelerating the risk:
- 🔺 Increased awareness of rights around discrimination, harassment, retaliation, and wage laws
- 💼 Hybrid and remote workforces leading to blurred lines on communication and expectations
- 📉 Layoffs, terminations, and restructuring during economic shifts creating friction
- 🏛️ Aggressive legal representation and employee advocacy at the state level, especially in Colorado
Whether or not a claim has merit, defending one can cost thousands—or even hundreds of thousands—in legal fees and potential settlements.
What Is EPLI Insurance?
Employment Practices Liability Insurance (EPLI) helps protect your business from claims made by employees, former employees, or even job applicants. It typically covers:
- Wrongful termination
- Discrimination (age, race, gender, etc.)
- Harassment (including sexual harassment)
- Retaliation
- Failure to hire or promote
- Mismanagement of employee benefits
- And more, depending on the policy
EPLI policies cover legal defense costs, settlements, and judgments—costs that could otherwise come directly from your bottom line.
Real-World Scenario
Imagine this: A former employee alleges they were let go due to age discrimination. You have documentation that performance was the issue—but now you’re facing a $45,000 legal bill just to defend yourself. Even if you win, you lose.
EPLI helps cover those defense costs, so one employee dispute doesn’t derail your cash flow, operations, or leadership focus.
Common Misconceptions We Hear
❌ “We’re a small company—this won’t happen to us.”
Smaller businesses are often more exposed because they don’t have in-house HR or legal teams.
❌ “We treat our people well, so we’re not at risk.”
Even well-intentioned actions can be misinterpreted or mishandled—especially when documentation is lacking.
❌ “Our general liability policy should cover this.”
It doesn’t. General liability excludes employment-related claims. You need dedicated EPLI coverage.
What Does EPLI Cost?
The cost of EPLI coverage depends on your:
- Number of employees
- Industry and business type
- Past claims history
- Internal HR practices and policies
In Colorado, many small to mid-sized businesses pay between $1,200–$4,000 annually for standalone EPLI coverage, though this varies.
💡 Pro Tip: EPLI is often more affordable when bundled into a management liability package alongside Directors & Officers (D&O) or fiduciary liability.
Conexus Perspective
Employee-related risks don’t always come from the people you expect. Sometimes, it’s a former intern. Or a candidate who wasn’t hired. At Conexus, we help employers in the Denver–Boulder area assess their real exposure—and put protection in place that fits your business.
Employee risk is real—but it doesn’t have to be overwhelming. We’re here to help you protect what you’ve built.
Let’s Talk
Not sure if EPLI is the right fit for your business? Let’s have a conversation. We’ll help you:
- Review your current coverage (if any)
- Understand what’s excluded from your general liability policy
- Benchmark costs based on your industry and size
- Explore options that match your risk and budget
👉 Reach out today to schedule a quick risk review. No pressure—just proactive planning.
This content is for informational purposes only and does not constitute legal or insurance advice. Coverage options and pricing vary by carrier and individual business profile. Employers should consult a licensed insurance advisor to evaluate their specific risk and coverage needs.