5 Real EPLI Claim Examples for Dental and Medical Offices (and What They Teach Us)
Running a dental or medical practice means managing people as much as patients. Even with good intentions, an employment dispute can escalate quickly—and it’s often expensive to defend. Employment Practices Liability Insurance (EPLI) helps cover legal costs when staff allege wrongful termination, discrimination, harassment, or other workplace violations.
The following are five fictionalized but realistic EPLI claim examples drawn from situations medical and dental offices face every year. Each ends with a practical takeaway to help protect your practice.
1) Dental assistant claims wrongful termination
A dental office let a longtime assistant go after repeated no-shows. The employee filed a wrongful termination claim, alleging retaliation for reporting OSHA violations. Legal defense dragged out for months.
How EPLI helped: The insurer appointed counsel, covered defense fees, and funded a settlement under the retaliation coverage grant.
Lesson: Document all disciplinary actions and reasons for termination. Even justified terminations can trigger costly claims.
2) Hygienist alleges harassment by a senior dentist
A hygienist reported repeated inappropriate comments from a senior partner. The practice had no formal HR training or complaint procedure in place. The case led to an EEOC investigation and a private settlement.
How EPLI helped: The policy covered legal defense, mediation costs, and the negotiated settlement amount.
Lesson: Implement and enforce written anti-harassment and reporting policies. Provide staff training annually.
3) Medical receptionist files disability discrimination claim
A front-desk employee at a small medical clinic requested reduced hours for medical reasons. When her hours were later cut during restructuring, she claimed discrimination under the ADA.
How EPLI helped: The insurer defended the claim, covering legal fees and partial back pay after mediation.
Lesson: Engage in an interactive process when staff request accommodations. Always document communication and decisions.
4) Payroll dispute turns into a class-action claim
Several former employees alleged missed meal breaks and improper overtime calculations under state wage laws. The practice owner thought “salary” exempted staff from overtime.
How EPLI helped: Defense costs were covered up to sub-limits, and the insurer negotiated a structured settlement to avoid full litigation.
Lesson: Review wage and hour classifications annually. Many EPLI policies now offer limited wage-and-hour coverage—ask your broker if yours does.
5) Manager accused of retaliation after scheduling dispute
A dental office manager reduced shifts for an employee who had complained about scheduling fairness. The employee claimed retaliation and emotional distress.
How EPLI helped: The insurer appointed counsel and resolved the matter through mediation, covering legal defense and settlement costs.
Lesson: Train managers to separate personal conflicts from employment decisions. Retaliation is one of the most common and costly EPLI claims.
Practical takeaways for practice owners
Keep written HR policies up to date, train staff on discrimination and harassment prevention, and maintain accurate payroll and termination documentation. These steps reduce your exposure but don’t eliminate it. EPLI protects your practice from the legal and financial consequences of employee allegations—even unfounded ones.
Coverage, terms, and limits vary by carrier and policy form. Review the actual policy to understand definitions, exclusions, and reporting requirements. Coverage is governed by the policy wording, not prior summaries.
Ready to price EPLI coverage for your practice?
Start the quick application
or
learn more about business insurance options.
Related reading
Tech E&O claim examples |
All WHINS blog posts
FAQ
What does EPLI cover?
It covers defense costs and settlements for employment-related claims such as discrimination, harassment, wrongful termination, and retaliation.
Is EPLI required for small medical or dental offices?
No, but it’s strongly recommended. Even a single employee claim can exceed your legal budget and disrupt operations.
Does general liability insurance include EPLI?
Not usually. EPLI is a separate policy specifically designed for employee-related disputes and regulatory actions.
Can EPLI cover wage and hour claims?
Some carriers include limited coverage or sub-limits for wage and hour defense, but it’s not standard. Review your policy or ask your broker to confirm.
This article provides general information for educational purposes only. It is not legal or insurance advice. Always review the actual policy and consult with your broker about your specific situation.