What is employment practices liability insurance (EPLI)?

Employment Practices Liability Insurance (EPLI) is coverage that protects your restaurant from employee lawsuits alleging wrongful termination, discrimination, harassment, retaliation, wage violations, or other employment-related claims.

What you need to know

EPLI covers legal defense costs and settlements when employees sue over employment issues. Without it, even frivolous claims can cost $50,000+ to defend, and serious claims can result in six-figure settlements.

Why it matters for restaurant owners

Restaurant work environments—with diverse staff, young employees, tipped positions, and high turnover—create elevated risk for employment claims. Sexual harassment allegations, discrimination claims, and wage/hour disputes are common in the industry.

EPLI is essential once you have more than 3-5 employees. It typically excludes wage/hour claims unless specifically added, so verify your policy includes this if you employ tipped workers or have complicated scheduling.