A former employee sues her ex-employer alleging sexual harassment by a supervisor and wrongful termination in retaliation for complaining. Which type of liability policy is specifically designed to respond to these allegations?
Explanation
Employment Practices Liability Insurance (EPLI) covers wrongful acts arising out of the employment relationship: sexual or other harassment, discrimination based on protected class, wrongful termination, retaliation, failure to promote, and similar claims. Workers' comp covers bodily-injury type work injuries (not intentional acts against employees). CGL Coverage A excludes injury arising out of the employment relationship.
Law Reference: Employment Practices Liability Insurance (EPLI)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A customer slips and falls in a grocery store. The CGL Medical Payments (Coverage C) section will respond:
- A licensed real estate agent is sued by a buyer for failing to disclose a known leaky roof. Which type of policy is most likely to cover this claim?
- Shareholders sue the board of directors of a corporation for breach of fiduciary duty in approving an unfavorable merger. Which policy is designed to cover the directors' defense costs and any settlement?
- A California retailer suffers a ransomware attack that exposes the personal data of 50,000 customers. The retailer's CGL policy excludes 'damages arising from access to or disclosure of confidential information.' Which separate policy is most likely intended to respond?
- Which statement BEST distinguishes a commercial umbrella policy from a true excess liability policy?
- Under California's Dram Shop law, a bar that sells alcohol to an OBVIOUSLY INTOXICATED MINOR who then causes a fatal car crash:
Last reviewed: · editorial process