At ContractorNerd, we’ve changed the way contractors and home service businesses protect themselves from employment-related lawsuits. Our digital platform makes getting Employment Practices Liability Insurance (EPLI) simple and quick, offering quotes from carriers who know your industry’s risks. You can compare coverage, buy protection, and receive confirmation all on the same day. Our specialist brokers are always available to help you make the right choices.

ContractorNerd combines advanced digital tools with insurance expertise. Our platform makes buying EPLI easier, but we understand that employment liability risks can be complicated. That’s why our licensed brokers are available by chat and phone to discuss your workforce challenges, explain how EPLI protects against real claims in construction and home services, and help you pick coverage limits that fit your hiring practices and project size. We also work to keep your premiums affordable.

The Employment Law Challenge

If you own a construction company or home services business, especially in states like California, you know how hard it is to keep up with changing employment laws. It’s easy to fall behind, and without the right insurance, you could be at risk if a claim happens.

Many contractors have little to NO coverage for employee issues like wrongful termination, discrimination, sexual harassment, and wage & hour disputes. These employment practice claims aren’t covered by your general liability policy, leaving a dangerous gap in your protection.

Employment Practices Liability Insurance fills this critical gap, providing an umbrella of protection when employment-related claims arise. The construction and home services industries face unique employment challenges that make EPLI particularly important:

  • Frequent hiring and layoffs due to project-based work
  • Use of seasonal workers, independent contractors, and part-time labor
  • Lack of formal HR departments in smaller companies
  • High potential for third-party interactions with clients, vendors, and the public
  • Physically demanding work environments
  • Written policy and procedure manuals that may be outdated or incomplete

How Your Construction Company Can Avoid Employment Practice Claims

The best place to start is learning and adhering to rules laid out by the Equal Employment Opportunity Commission (EEOC). If your construction company were a sports team, the EEOC would be the league office. Here’s how to protect your business:

Establish Clear Policies: Publish and disseminate consistent employment practices and policies that clearly define your company’s expectations regarding workplace interactions and communications. Detail specific procedures for hiring, disciplining, and terminating employees.

Provide Training: Schedule awareness training workshops for employees and managers to ensure everyone understands appropriate workplace conduct and your company’s policies.

Monitor Your Workplace: Actively watch for potential violations and address issues before they escalate into claims.

Enforce Zero Tolerance: Let managers, employees, and contractors know that employment practice violations will not be tolerated and will result in dismissal. Maintain an “open door” policy for employees who feel they’ve been subjected to unfair employment practices.

Even with these preventive steps, claims can still happen. That’s why having EPLI coverage is so important.

The Rising Threat of Employment Claims

EPLI claims are surging, with employment-related lawsuits increasing roughly 400% over the past 20 years. Almost half of all these cases target companies with fewer than 100 employees—the exact size of most contracting businesses. The # MeToo movement has further highlighted the severity of workplace harassment and discrimination cases.

Every business with employees can face an EPLI claim, regardless of how careful you are or how much you trust your workforce and managers. If other firms in your industry have experienced employment practices litigation, it’s only a matter of time before you could face similar challenges.

What EPLI Actually Covers

You’ll need to consult your specific policy documents to confirm exactly what coverage your policy provides, but Employment Practices Liability Insurance typically covers:

Defense Costs: EPLI helps cover court costs and legal fees from claims made against you or your business by employees. These expenses can quickly reach six figures, even if you win.

Settlements and Judgments If a case results in a settlement or a judgment is awarded against your company, EPLI provides coverage for these potentially business-ending costs.

Core Employment Claims:

  • Wrongful Termination: Claims from employees alleging they were unfairly fired
  • Discrimination: Claims based on age, gender, race, religion, disability, or other protected characteristics
  • Harassment: Sexual harassment, hostile work environment, or other forms of workplace harassment
  • Retaliation: Allegations that employees faced negative consequences for reporting workplace issues

Additional Coverage Areas:

  • Employment-related defamation
  • Invasion of privacy
  • Failure to promote
  • Deprivation of career opportunity
  • Negligent evaluation
  • Wage and hour violations (often as limited coverage)

Who’s Protected: EPLI policies typically protect directors and officers, management personnel, and employees as insureds. Coverage extends to liability claims from current, former, and prospective employees, as well as independent contractors and volunteers.

What EPLI Does NOT Cover

Similar to many insurance policies, Employment Practices Liability Insurance has important exclusions. EPLI doesn’t cover:

  • Bodily injury or property damage (covered by general liability)
  • Workers’ Compensation claims (covered by workers’ comp insurance)
  • Labor law violations such as minimum wage or overtime pay disputes (though some policies offer limited wage & hour coverage)
  • Criminal acts or intentionally fraudulent behavior
  • Claims covered by Directors & Officers (D&O) policies
  • Breach of contract claims outside the employment context

Remember, EPLI is focused only on liability related to employment practices. It is meant to work with your other business insurance policies, not replace them.

Who Can File Claims Against You?

Claims can come from multiple sources:

  • Current employees
  • Former employees
  • Prospective employees (job applicants)
  • Independent contractors and volunteers
  • Third parties (customers, clients, vendors who interact with your employees)
  • Government bodies

Common EPLI Claims in Construction

The construction industry sees specific patterns of employment claims:

  • Wrongful termination when projects complete or work slows
  • Discrimination charges during hiring surges or layoffs
  • Sexual harassment allegations on job sites
  • Wage and hour disputes over overtime, breaks, or off-the-clock work
  • Third-party harassment claims from clients or vendors
  • Retaliation claims after safety complaints or injury reports

Do You Need EPLI? Key Questions to Consider

Ask yourself these questions to determine your EPLI needs:

  • Do you hire employees? Is your workforce growing?
  • Do you have a written policy and procedures manual that includes HR policies?
  • Is your manual updated periodically to reflect current employment laws?
  • Do you hire independent contractors or work with volunteers?
  • Do your employees interact or communicate with customers (third parties)?
  • Has your attorney discussed employment practices liability with you?
  • Have other contractors in your area experienced employment litigation?

If you answered yes to any of these questions, you likely need EPLI protection.

EPLI Coverage Options

You can obtain EPLI as:

  • Standalone EPLI policies for comprehensive coverage with higher limits
  • EPLI as part of a management liability package bundled with D&O and other protections
  • Limited EPLI endorsements added to business owner policies

While most contractors carry general liability and commercial property insurance, many overlook the substantial losses that can result from employee-related lawsuits. Consider additional coverages, such as wage and hour endorsements and third-party liability coverage, based on your specific risks.

Understanding EPLI Costs

The cost of EPLI insurance varies based on several factors:

  • Number of Employees: More employees mean higher premiums due to increased claim risk
  • Turnover Rates: Higher turnover correlates with more wrongful termination claims
  • HR Procedures: Strong, updated policies and manuals can reduce premiums
  • Industry Risk: Construction and home services face higher risk due to customer interaction
  • Coverage Limits: Most policies range from $100,000 to $1,000,000
  • Claims History: Past employment claims affect your premium
  • Deductible: Higher deductibles lower premiums but increase out-of-pocket costs

How ContractorNerd Streamlines Your EPLI Insurance Process

Finding and securing the right employment practices liability coverage shouldn’t consume hours of your valuable time managing workforce risks. Stand-alone EPLI policies have a more modernized insurance buying process:

Step 1: Simplified Information Gathering. We collect most of the information we need through our easy-to-use digital platform, including employee count, turnover rates, HR procedures, and claims history. You won’t have to repeat the same details to different agents or fill out extra forms.

Step 2: Access to Leading Insurers. Our team connects you with quotes from top-rated insurers who understand construction and home services employment risks. We leverage our relationships to access markets and pricing that individual contractors often can’t reach on their own, ensuring you see all available EPLI options including wage and hour coverage and third-party protection.

Step 3: Digital Binding and Documentation. After you select a quote, we handle everything online. You can finish the process, meet any underwriting needs, pay, and get your EPLI certificates the same day you pay. You’ll be ready to show clients or meet contract requirements right away.

Get EPLI Coverage Today

With ContractorNerd’s digital platform and specialist brokers, you can get EPLI coverage in days, not weeks. Our licensed brokers are available by chat or phone to review your workforce structure, recommend the right limits tailored to your specific needs, and explain common employment claims so you know what’s covered. They’ll also help you manage premiums through smart deductible choices and carrier selection while maintaining the protection your business needs.

Request a free quote today. With quotes and advice from our specialist brokers, you get the convenience of technology and the confidence of professional support. Try ContractorNerd’s modern platform to efficiently and affordably secure the EPLI protection your contracting business needs, backed by the expertise of brokers who understand the unique employment challenges in the construction and home services industries.