Understanding D&O and EPLI: Risk Protection for Today’s Employers

As a licensed insurance agent, you know that today’s business environment brings more scrutiny—and higher risk. For clients with employees, leadership responsibilities, or even just a board, Directors & Officers (D&O) and Employment Practices Liability Insurance (EPLI) are two essential policies.

This guide will help you position both coverages confidently and clearly.

What Is D&O Insurance?

D&O (Directors & Officers) covers claims made against a business’s decision-makers—owners, directors, or officers—when they’re accused of making a wrong call.

It typically covers:

• Breach of fiduciary duty

• Misuse of company funds

• Misrepresentation

• Failure to comply with regulations

Example: A privately held business owner is sued by investors for misrepresenting financial performance during a funding round.

What Is EPLI?

EPLI (Employment Practices Liability) covers businesses when employees file claims related to workplace behavior or decisions.

It typically covers:

• Wrongful termination

• Harassment or discrimination

• Retaliation

• Failure to promote or hire

Example: A former employee sues after being terminated, alleging it was retaliation for raising concerns about work conditions.

Why It Matters Right Now

Employment-related lawsuits are increasing—especially among small businesses navigating hybrid work, evolving policies, and growing regulatory pressure. Employees are more aware of their rights, and leadership decisions are under more scrutiny than ever.

Isn’t This Just for Large Companies?

Actually, no.
Privately held businesses, nonprofits, and startups are just as likely to face D&O or EPLI claims—often without the in-house legal teams to manage them. These policies are just as critical for 10-person teams as they are for 100+.

Quick Coverage Comparison

Why Bundle D&O and EPLI?

Offering both policies together creates stronger, more holistic protection. It also shows clients you’re thinking proactively about real-world risk.

Together, they help cover:

• Leadership decisions that affect shareholders, vendors, or the public

• Internal disputes related to employees and hiring/firing practices

• Legal fees—even if no wrongdoing occurred

Want help quoting D&O and EPLI?

Explore our Professional Liability Markets