Under an EPLI policy, what does the insuring agreement primarily cover?

The correct answer focuses on the core purpose of Employment Practices Liability Insurance (EPLI), which is designed to protect businesses from claims made by employees alleging wrongful acts in the workplace. This includes allegations of discrimination, wrongful termination, sexual harassment, and other employment-related issues.

The insuring agreement in an EPLI policy primarily covers damages arising from these wrongful acts against employees, acknowledging the specific legal exposures that arise within the employer-employee relationship. The policy helps to mitigate the financial impact of claims, attesting to the importance of safeguarding both the organization and its employees.

Other options represent different types of insurance coverage unrelated to EPLI. For instance, property damage claims would typically fall under general liability or property insurance, while accidental injuries on premises would be covered under premises liability insurance. Fraud claims against the organization might involve different liability or fidelity insurance policies, rather than EPLI, which specifically addresses employment-related claims. Thus, the insuring agreement of an EPLI policy is distinctly focused on the unique risks associated with employment practices.