Helms, Mulliss, Wicker's "Workcite" webpage has a good post on the basics of EPLI insurance. Employment defense attorneys differ sharply on the advisability of such policies. Certainly it is a complicated cost-benefit analysis that any company must go through before signing on for such policies. It is no secret that a defendant loses some amount of control over and, in some cases, quality of legal representation when it is provided through an insurance carrier. I have seen some policies that (given application of typical caps in employment cases) I have a hard time seeing how the insurer would ever be liable under the policy. Long story short: Do your homework, shop around, and consider consulting with an employment attorney prior to purchasing one of these policies. This article is a good place to start.