Employment Practices Liability Insurance Calculator
Free EPLI calculator — estimate your annual premium for employment practices liability insurance based on workforce size, revenue, industry risk, and claims history. No signup required.
By Emiliano · Last updated 2026-10-16
Want an exact, underwritten quote for your business?
How this calculator works
This calculator estimates your Employment Practices Liability Insurance (EPLI) premium by starting with a baseline cost per employee, adjusting for your industry risk profile and state litigiousness, and scaling based on your annual revenue and prior claims history. Higher employee counts, litigious jurisdictions, and past claims increase your overall exposure.
Formula source: Commercial Insurance Underwriting Guidelines & ISO Actuarial Standards.
📊 See how your state compares — 50-state cost analysis
How Much Does EPLI Cost?
Employment Practices Liability Insurance costs $1,200–$8,000 per year for most small businesses, depending on employee count, revenue, state, and industry. Here are 2026 benchmarks:
- 1–5 employees: $1,200–$2,500 per year for $1M coverage
- 6–15 employees: $2,000–$4,000 per year
- 16–50 employees: $3,500–$6,500 per year
- 51–100 employees: $5,500–$8,000+ per year
Three factors drive most of the cost variation:
- Employee count — EPLI premiums scale roughly linearly with headcount above 5 employees
- State — California, New York, and Illinois run 30–50% above the national average due to employment litigation rates
- Industry — restaurants, healthcare, and construction face higher EPLI rates due to higher turnover and physical work environments
- Claims history — a single EPLI claim can raise premiums 25–45% for three years
EPLI claims average $75,000–$250,000 in defense and settlement costs — even for claims that end in the employer's favor. This is why most brokers recommend EPLI for any business with 5+ employees, even in states where it's not legally required.
What Factors Affect Your Premium?
Underwriters evaluate multiple risk metrics when determining your final EPLI quotation. The primary driver is your total employee count, as more workers statistically correlate with a higher volume of potential workplace disputes. Part-time, seasonal, and full-time employees are all factored into the overall exposure calculation, though underwriters sometimes weigh them differently.
Geographic location is another vital rating factor. States like California and New York feature unique labor laws, higher average settlement amounts, and more active plaintiff attorney networks, driving up regional base rates. Additionally, your industry classification matters: sectors with high turnover or stringent regulatory environments, such as healthcare and hospitality, often face steeper underwriting multipliers than standard professional services firms.
Frequently Asked Questions
What does EPLI insurance typically cover?
EPLI policies cover legal defense fees, settlements, and judgments arising from employee lawsuits alleging discrimination, wrongful termination, sexual harassment, breach of employment contract, and failure to promote.
Is third-party discrimination covered under standard EPLI?
Standard policies focus primarily on employee-on-employee claims. However, many modern commercial forms can be endorsed to include third-party liability covering claims made by customers, vendors, or visitors against your staff.
How can my business lower its EPLI premiums?
Insurers reward proactive risk management. Maintaining an up-to-date employee handbook, establishing clear anti-harassment reporting procedures, providing regular manager training, and consulting legal counsel before terminations will help reduce quotes.