A growing product on the insurance markets is employment practices liability insurance (EPL), a type of policy that business owners can buy to protect their organizations against employee suits for rights protected under acts above. More recently, with the expansion of privacy law(s), employee privacy concerns have come to the fore as private employee data is stored electronically. This is not always covered under an EPL policy, but the insurance industry has responded by offering cyber liability and network security policies.

Importantly, there are both federal and state statutes that govern an employer’s liability to its employees. Laws also differ from state to state; e.g., California, is often considered a pro-employee state when it comes to employers’ liability.

Like most kinds of professional liability insurance, EPL insurance policies operate on a claims-made basis. This means that policyholders can only receive insurance benefits if they are covered both at the time of the discrimination incident that triggered the claim and at the time when the claim is filed.