Although many employers regularly face employment litigation, employment-related lawsuits tend to increase during a stagnant or faltering economy. At such times, companies of all sizes are exposed to employment practices litigation, which can have enormous defense costs even if a settlement or verdict is relatively low. In order to best insulate themselves from costly verdicts, settlements and defense costs, policyholders should consider and understand employment practices liability insurance (EPLI) policies, including key concepts related to what is and is not covered, who is covered and how EPLI coverage operates.