Termination Insurance
What Does Termination Insurance Mean?
In liability insurance, termination insurance is a type of business liability coverage that protects an employer in the event an employee sues the company for wrongful termination. Initially, wrongful termination insurance was included under regular business liability coverage, but it has since been issued separately under employment practices liability (EPL) coverage.
Insuranceopedia Explains Termination Insurance
Wrongful termination is one of the risks covered under the comprehensive employment practices liability (EPL) insurance, which protects employers from the financial consequences of employment-related lawsuits. This coverage includes lawsuits involving race or age discrimination, wrongful termination, sexual harassment, and disputes between employees and third parties. Employers who wish to protect themselves from the financial burden of lawsuits filed by terminated employees should consider obtaining an EPL policy.
