EPLI, EAPs & Employer Protection with a PEO
Protecting Your Business and Your People: EPLI and EAP Explained
When you’re running a business, protecting your team and protecting yourself often go hand-in-hand. That’s where two powerful resources come into play: Employer Practices Liability Insurance (EPLI) and Employee Assistance Programs (EAP).
In this episode of The PEO Playbook, Chad Philly and Marty Gray from Staff Brokers unpack how these two tools work, why they matter, and how working with a Professional Employer Organization (PEO) can make them both more accessible and more effective.
What is Employer Practices Liability Insurance (EPLI)?
EPLI protects employers from claims made by employees related to workplace violations. This includes:
Wrongful termination
Sexual harassment
Racial or gender discrimination
Retaliation or hostile work environment claims
Even if you run a great workplace and have no intention of violating the law, you can still be sued. Perception, misunderstandings, and situations outside your direct control can lead to legal trouble.
Without EPLI, defending against these claims can be financially devastating — legal fees and settlements can quickly reach six figures.
Why EPLI is Different Through a PEO
Buying EPLI as a standalone product for your business can be expensive, especially for companies with a small workforce. PEOs change the game by:
Buying in bulk – Spreading risk across thousands of employees means dramatically lower per-employee rates.
Providing expert claim handling – PEOs have teams that know how to investigate, document, and resolve issues quickly.
Integrating prevention – From compliant handbooks to up-to-date harassment policies, PEOs build safeguards before problems occur.
A typical standalone EPLI policy might cost a business with 50 employees tens of thousands annually. With a PEO, coverage often comes at a fraction of the cost, sometimes bundled into the overall service package.
Real-World Scenarios Where EPLI Saved the Day
The Roofing Company Fight – Two employees fought on a job site, resulting in an injury claim. The PEO helped the business owner navigate legal reporting, document the incident, and ensure the claim was managed without inflating costs.
Customer Interaction Gone Wrong – An employee working in a client’s home was accused of harassment. The PEO’s EPLI policy included third-party coverage, shielding the business from a costly lawsuit.
The Owner Accusation – Even consensual relationships can turn into legal claims. In one case, EPLI limited the business owner’s exposure, covering defense costs and helping reach resolution quickly.
Employee Assistance Programs (EAP): Supporting the Whole Person
While EPLI protects the business, EAPs are designed to support employees (and often their families) through personal and professional challenges.
An EAP can provide:
Confidential counseling services
Resources for handling family or financial issues
Guidance for navigating crises like natural disasters or domestic violence
Help with substance abuse, stress management, or mental health concerns
Why EAPs Matter
Happy, supported employees are more productive, loyal, and engaged. But small business owners often don’t have the resources to offer comprehensive wellness support. A PEO changes that by:
Providing confidential, professional help without burdening internal staff.
Covering employees and their families for a wide range of issues.
Offering resources that can prevent personal challenges from becoming workplace problems.
The Big Picture: Protection + Prevention
EPLI and EAPs aren’t just “nice-to-haves” — they’re essential parts of running a sustainable, protected business.
With a PEO, you get:
Cost savings through bulk buying power.
Better risk management through proactive policies and procedures.
Expert handling when issues arise, minimizing financial and operational impact.
Take the Next Step
Don’t wait until a lawsuit or crisis forces you to act. Discover how a PEO can protect your business and your people.
Book your consultation today at www.PEOPlaybook.com/BookNow.
