What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) is a type of insurance created in the early 1990s that is designed to cover a company's liability resulting from actual or alleged sexual harassment, wrongful termination, or discrimination against employees. Such claims are generally not covered by a company's comprehensive general liability policy, which will often specifically exclude these types of claims. A company's directors and officers policy may offer a limited form of insurance coverage for these types of claims, but will probably not extend coverage to the entity itself-which is where the greatest exposure lies.