Which liability insurance policy provides coverage for wrongful discharge claims?

The policy that provides coverage for wrongful discharge claims is Employment Practices Liability Insurance (EPLI). This type of insurance is specifically designed to protect businesses against claims made by employees alleging violations of their legal rights in the employment context. Wrongful discharge, which involves an employee claiming they were terminated from their job for illegal reasons or without proper cause, falls directly under the purview of EPLI.

EPLI covers a range of employment-related issues, including wrongful termination, discrimination, harassment, and retaliation claims. It provides essential protection for employers, helping to defend against lawsuits that may arise from such employment practices, ensuring legal costs and damages are covered.

In contrast, general liability insurance primarily covers third-party bodily injury and property damage claims, while directors and officers liability insurance is geared towards protecting the personal assets of corporate directors and officers against legal actions connected to their management decisions. Product liability insurance concerns claims related to injuries or damages caused by products sold or manufactured by a business. None of these policies address wrongful discharge claims, which is why Employment Practices Liability Insurance is the correct choice.