In 2026, the “Human” side of business is often the most legally dangerous. As workplace culture continues to evolve and new labor laws take effect, Employment Practices Liability Insurance (EPLI) has become a “must-have” for any business with even one employee. This policy protects the company from the high cost of defending against lawsuits involving wrongful termination, discrimination, and sexual harassment—claims that standard General Liability policies strictly exclude.
The 2026 Risk Landscape: More Than Just “Harassment”
While “Me Too” claims remain a focus, the 2026 EPLI market is seeing a surge in new types of claims:
- Remote Work Discrimination: Claims that remote workers are being passed over for promotions or “proximity bias” in the office.
- Wage and Hour Disputes: Lawsuits involving “off-the-clock” work or misclassification of contractors—a massive focus for 2026 regulators.
- Retaliation: Statistically, this is now the #1 claim in the US. It occurs when an employee alleges they were punished for “blowing the whistle” or filing a complaint.
- Algorithmic Bias: A new 2026 risk where businesses are sued because their AI-driven hiring software unintentionally discriminated against a certain group of applicants.
The High Cost of “He Said, She Said”
EPLI is unique because it often pays for the defense before any judgment is made. In 2026, the average cost to defend a wrongful termination lawsuit is between $50,000 and $100,000. Even if the business did nothing wrong, the legal fees alone can be enough to sink a small firm.
- Retention (Deductible): Most 2026 EPLI policies have a higher deductible (often $5,000 or $10,000) to keep the annual premium affordable.
- Full Prior Acts: Crucial for 2026, this covers the business for incidents that happened before the policy was bought, provided no one knew about the potential claim.
2026 Pricing and Industry Hotspots
The cost of EPLI depends heavily on your “Headcount” and your “Turnover Rate.”
| Industry Sector | 2026 Risk Level | Avg. Annual Premium ($1M Limit) | Primary Risk Drivers in 2026 |
| Medical / Healthcare | Ultra-High | $4,000 – $7,500+ | Staffing shortages, high burnout, and stringent regulatory compliance. |
| Retail / Hospitality | High | $3,500 – $6,000 | High employee turnover and frequent third-party harassment claims. |
| Tech / SaaS | Medium | $1,500 – $3,500 | Intellectual property disputes and AI-driven hiring bias allegations. |
| Legal / Professional | Medium | $1,200 – $2,800 | High-stakes partnership disputes and wage/hour misclassification. |
| Financial Services | Medium | $1,500 – $3,000 | Strict fiduciary duties and high-value retaliation claims. |
| Construction / Trade | High | $3,000 – $5,500 | Workplace safety-related retaliation and contractor misclassification. |
| General Consulting | Low | $800 – $1,500 | Generally smaller headcounts and more stable employment contracts. |
Top Rated EPLI Providers for 2026
- Chubb: Known for their elite “Loss Control” services. They provide policyholders with a free HR hotline and a database of state-specific employee manuals.
- AIG: A leader for mid-to-large firms, offering massive limits and specialized coverage for “Wage and Hour” defense (which many carriers exclude).
- The Hartford: Excellent for small businesses, often allowing EPLI to be added as an endorsement to a BOP at a significant discount.
Lowering Your EPLI Premium in 2026
Underwriters in 2026 are looking for “Prevention as Policy.”
- Updated Employee Handbook: Showing you have a 2026-compliant manual that clearly outlines your anti-harassment and social media policies.
- Documented Performance Reviews: Proving that you follow a fair and consistent “paper trail” before firing an employee makes a case much harder for a plaintiff’s attorney to win.
- Third-Party HR: Many 2026 insurers offer a 10% discount if you use a professional HR platform or PEO to manage your hiring and firing.
Next Step: Is your HR “Paperwork” a lawsuit waiting to happen? Use our 2026 EPLI Risk Assessment Tool to see if your current handbook meets the latest legal standards and get a specialized quote in minutes.