Which insurance covers wrongful termination?

• A. Employment Practice Liability Insurance
• B. Intellectual Property Insurance
• C. General Liability
• D. Workers' Compensation

Answer: (A)

Wrongful termination claims come from how an employer handled ending an employee’s job, and they’re addressed by Employment Practices Liability Insurance. This type of policy specifically covers claims arising from the employer–employee relationship, including wrongful termination, discrimination, harassment, and retaliation, by paying defense costs, settlements, or judgments up to the policy limits.

Other insurance types protect different risks: Intellectual Property Insurance covers IP infringement issues; General Liability handles third-party bodily injury or property damage; Workers’ Compensation covers work-related injuries and illnesses. None of these focus on disputes tied to employment practices like wrongful termination.