Ultimately, you can be sued and have done nothing wrong. Even if you have done nothing wrong, the cost to defend the claim can be enormous and put a huge financial burden on the business. Especially in litigious states like California. This is where EPLI coverage come in to play. The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements.