California Property & Casualty Broker-AgentCasualty InsuranceMedium
A company is considering purchasing an Employment Practices Liability Insurance (EPLI) policy. They are particularly concerned about claims related to workplace harassment and discrimination. Which of the following is a key characteristic of EPLI coverage that addresses these concerns?
- AIt covers financial losses due to errors or omissions in the professional services provided by the company.
- BIt covers bodily injury and property damage claims arising from general business operations.
- CIt covers damages to the company's vehicles resulting from collision or comprehensive perils.
- DIt provides coverage for claims made by employees alleging wrongful termination, discrimination, or harassment.
Show answer & explanationAnswer & explanation
Correct answer: D. It provides coverage for claims made by employees alleging wrongful termination, discrimination, or harassment.
Employment Practices Liability Insurance (EPLI) is specifically designed to protect businesses against claims made by employees alleging various employment-related violations, including wrongful termination, discrimination, and harassment.
Why the other options are wrong
- A. This describes Professional Liability (Errors & Omissions) insurance, not EPLI.
- B. This describes Commercial General Liability (CGL), not EPLI.
- C. This describes Commercial Auto Physical Damage coverage, not EPLI.
Employment Practices Liability Insurance (EPLI)
A type of liability insurance that covers employers against claims made by employees, former employees, or potential employees alleging wrongful termination, discrimination, sexual harassment, and other employment-related issues.
- Covers claims from employees.
- Includes wrongful termination, discrimination, harassment.
- Protects the business from legal costs and damages.
Memory trick: EPLI for employee woes, from wrongful acts to legal throws.