Employers commonly obtain insurance to protect themselves against the numerous claims that might be made against them that arise in the course of doing business. The more traditional of these insurance policies are comprehensive general liability (CGL) and directors and officers (D&O) policies. Employers, concerned about liability for their employment decisions, including liability for unlawful employment discrimination, increasingly have begun to look for more effective insurance coverage against such claims, because of the mixed results in coverage under the more traditional D&O and CGL
policies. The move toward insurance against employment discrimination claims is fueled not only by the growing number of statutory and common law claims now available to applicants and employees, but also by the headline grabbing, multimillion dollar verdicts and settlements in employment discrimination
cases.
A newer type of insurance available to defendants is called Employment Practices Liability Insurance (EPLI). EPLI policies are specifically drafted to cover employment discrimination claims. For a comprehensive treatment of insurance coverage of employment discrimination claims under traditional
policies and EPLI policies.