From wrongful termination to wage disputes, the risk of employee lawsuits in the restaurant industry is very real and it’s only growing.
Even if you’ve done everything “by the book,” just one employee claim can trigger a lawsuit that costs tens of thousands of dollars in legal fees, settlements, or worse: reputational damage.
This is where EPLI comes in.
At The Bunker, we work with restaurant owners to move their businesses from danger to a safe place and that starts with understanding what Employment Practices Liability Insurance (EPLI) really covers.
What Is EPLI?
EPLI (Employment Practices Liability Insurance) protects your business from employee-related lawsuits. It typically covers:
- Wrongful termination
- Discrimination (based on race, gender, age, etc.)
- Harassment (including sexual harassment)
- Retaliation
- Failure to hire or promote
It pays for legal defense costs, settlements, and judgments — even if the claim is groundless.
Why Restaurant Owners Need EPLI
Restaurants are particularly vulnerable to employment-related lawsuits because of the nature of the business:
✅ High turnover
✅ Youthful or part-time staff
✅ Limited HR oversight
✅ Tense, fast-paced work environments
Combine all of that with a lack of formal documentation or training and you’ve got a perfect storm for employment-related claims.
Even if a claim has no merit, you still have to defend yourself. And that alone can cost thousands in legal fees.
Why You Need EPLI as a Standalone Policy
Some Business Owners Policies (BOPs) offer limited EPLI endorsements but here’s the catch:
They’re often watered down.
They might cap your coverage at $25K or exclude key risks like third-party harassment claims. A standalone EPLI policy gives you:
- Higher limits
- Broader definitions of covered acts
- Access to expert legal counsel and risk management tools
If your business has any employees even just one a standalone EPLI policy is the smarter move.
What EPLI Doesn’t Cover
While EPLI is powerful, there are exclusions or sublimits you should be aware of:
🚫 Wage & hour disputes (like unpaid overtime or missed breaks)
🚫 Workers’ compensation claims
🚫 Intentional misconduct
That’s why it’s important to work with a risk advisor who understands both the policy language and the restaurant industry.
How to Better Protect Your Business
Here are a few actionable steps you can take today:
- Review your current insurance program — Do you have EPLI? What are the limits?
- Train your managers — Most lawsuits start from poor leadership or a lack of understanding.
- Document everything — Create clear records of employee complaints, write-ups, and terminations.
- Establish clear policies — Anti-harassment, anti-discrimination, and discipline policies should be in writing and signed by employees.
- Partner with a specialist — Someone who knows the risks and how to protect against them.
Final Thoughts
EPLI is one of the most overlooked insurance coverages in the restaurant industry until it’s too late.
The reality is that people are unpredictable. You can do everything right and still get sued.
At The Bunker Insurance & Risk Management, we help restaurant owners build safer, stronger businesses not just by selling policies, but by offering real risk strategy.
Don’t wait until you’re served with papers to ask if you’re covered.
Let’s talk about what protection looks like for your team, your future, and your peace of mind.
Schedule a time to chat with one of our licensed insurance agents here.