Which claims are covered by Employment Practices Liability (EPLI) insurance?

Employment Practices Liability (EPLI) insurance is specifically designed to protect businesses from claims made by employees regarding their rights as workers. This type of insurance covers a variety of employment-related issues, including allegations of discrimination, wrongful termination, harassment, and other breaches of employment law.

The focus of EPLI is on the employer-employee relationship and legal claims arising from employment practices. Claims of discrimination might involve situations where an employee feels they have been treated unfairly based on race, gender, age, or disability, while wrongful termination claims pertain to scenarios where an employee believes they were fired without just cause or against labor laws.

In contrast, claims related to property damage and physical injury generally fall under different types of insurance policies, such as general liability or workers’ compensation. These insurance products cover different aspects of risk; property damage pertains to tangible items, while physical injury often involves personal harm to individuals. Insurance fraud allegations usually are managed under specific crime or fraud coverage, not EPLI, which is tailored more towards employment-related disputes. This distinction emphasizes why claims of discrimination and wrongful termination are the correct focus under EPLI.