Wrongful termination, discrimination, and harassment claims can generate substantial defense costs and settlements. Employment practices liability insurance covers the company and often its directors, officers, and supervisors against claims arising from employment-related wrongful acts.

Covered allegations typically include discrimination, sexual harassment, wrongful discharge, retaliation, and related torts. Defense costs are usually within the limit of liability. Prior-acts coverage, third-party discrimination, and wage-and-hour claims may be included or excluded depending on the form and endorsements.

Underwriters examine employee handbook practices, training programs, and claims history. Retentions are common and may be higher for certain claim types. The coverage has become a standard part of the liability program for organizations of almost every size as employment litigation remains frequent and expensive.

• Coverage for employment-related wrongful acts
• Includes discrimination, harassment, and wrongful termination
• Defense costs often inside the limit
• Underwriting focuses on HR practices and history