As employment-related risks continue to evolve, brokers are reassessing how they approach employment practices liability insurance (EPLI) for their clients.
Allison Arnold, professional lines broker at JenCap, has observed a shift in the market, with more agents moving away from EPLI policies with shared limits and toward standalone, or monoline, solutions.
“All too often, when EPLI is bundled in with other coverages like General Liability or Property, the limits and enhancements just don’t measure up,” Arnold said. “Standalone policies clearly spell out the EPLI limits, and they regularly offer sublimits or endorsements that address exposures like Wage and Hour.”
Arnold noted that there are exceptions. “It makes sense with D&O because you can get separate, distinct limits for each line,” she said. “The problems usually come when EPLI gets tossed in with broader P&C packages, where the limits or exclusions may leave gaps.”
Standalone EPLI policies are designed to address these issues by providing clear, dedicated limits, enhancements such as wage and hour or immigration practices coverage, and fewer exclusions that could reduce protection when claims occur.
With settlements for individual suits averaging tens of thousands of dollars and class actions stretching into the millions, Arnold said, “Monoline EPLI is built to withstand real-world pressure in ways a bundled add-on simply can’t.”
Arnold has seen a range of industries move toward standalone EPLI coverage. “Car dealerships and hospitality risks typically realize these exposures a bit more as they see a lot of turnover in employment, and the environments can easily lead to EPLI exposures like discrimination or harassment,” she said. “From engineering firms to comedy clubs, every employer is exposed, making this an easy conversation for agents to initiate.”
Among the enhancements available in monoline EPLI policies, wage and hour coverage stands out. “Wage and hour is an essential coverage we always like to see on our EPLI policies. It is more of a hot topic now due to our nation being very litigious and movement on laws and regulations from the government. This coverage helps companies cover lawsuits regarding the Fair Labor Standards Act issues, like overtime pay, minimum wages, child labor, and more,” Arnold said.
Industry data shows that top wage and hour settlements in the US have surpassed $600 million in a single year. For employers in sectors with predominantly hourly workforces, such as hospitality, healthcare, staffing, and retail, the exposure is persistent and financially significant. Without dedicated sublimits for wage and hour, businesses may face substantial financial burdens.
Another area of growing concern is immigration-related investigations. “Typically, we see this sublimited, and it is intended to help a company deal with a lawsuit regarding violations of the Immigration Reform and Control Act. For example, this act makes it illegal to hire or recruit undocumented immigrants. Insureds may not think this is an exposure for them, but with the climate in our country, it is always good to have coverage included as opposed to not having it when an issue comes down the pipeline,” Arnold said.
When asked whether packaged EPLI is sufficient on its own, Arnold responded that in some cases it can be. Combining EPLI with directors & officers (D&O) coverage can be an effective strategy, as it provides separate and clearly defined limits for each coverage type within a single policy.
“But when EPLI is bundled into broader property & casualty packages, that’s when coverage tends to fall short,” Arnold said. “Those versions typically have low limits, restrictive sublimits, and are often missing key enhancements. For most employers, a standalone policy remains the most precise and most reliable protection.”
Explaining what sets monoline EPLI apart, Arnold said that it offers agents greater flexibility. “It allows you to customize limits, add enhancements like wage and hour or Immigration Practices coverage, and negotiate better pricing. This not only protects your client but also helps you stand out against competing brokers.”
Arnold also addressed which clients should be approached with monoline EPLI: “Any employer with employees faces EPLI exposure. It becomes especially critical for clients in hourly-workforce industries like hospitality, healthcare, staffing, and retail, as well as schools, nonprofits, and companies with higher turnover.”
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