Under EPLI, what does the "coverage territory" specify?

The "coverage territory" in an Employment Practices Liability Insurance (EPLI) policy refers to the geographical area covered by the policy. This definition is crucial because it delineates the specific locations where the coverage is applicable. Understanding the coverage territory is essential for an insured entity, as it determines the boundaries within which potential claims or incidents can be pursued under the policy.

For instance, if the coverage territory is strictly defined as the United States, any employment-related claim occurring outside this territory would not be covered, regardless of the nature of the claim. This specification helps organizations understand the extent of their protection and informs them of any limitations regarding where they can operate safely under their EPLI coverage. By clearly stating this scope, the policy aids in risk management and loss prevention strategies for businesses.