Employment practicesliability insurance covers a business for claims made by an employee such as wrongful termination or discrimination. This insurance gives assistance to the insured in mounting a defense against a claim, or it may also pay for damages because of a claim honored by a court of law.
In addition, the policies cover claims from a variety of other types of inappropriate workplace conduct, including (but not limited to) employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. The policies cover directors and officers, management personnel, and employees as insureds. Although EPLI is available as a stand-alone coverage, it is also frequently sold as part of a management liability package policy.