Employment Related Practices Liability provides employers with which type of coverage?

• A. Occurrence-based coverage
• B. Claims-made coverage for employment-related offenses
• C. Property coverage only
• D. Auto liability coverage

Answer: (B)

Employment Related Practices Liability covers employers against lawsuits alleging employment-related offenses such as discrimination, harassment, retaliation, and wrongful termination. This line of coverage is typically written on a claims-made form, meaning coverage applies when a claim is first made during the policy period (and you may need tail coverage when the policy ends to protect claims filed later). Occurrence-based coverage would apply to events that happen during the policy period regardless of when the claim is filed, which isn’t how EPLI is usually structured. It does not provide property or auto liability coverage. Therefore, the type of coverage provided is claims-made coverage for employment-related offenses.