What defines a "wrongful act" in an EPLI policy?

A "wrongful act" in an Employment Practices Liability Insurance (EPLI) policy encompasses claims related to employment practices that violate an individual’s legal rights. The primary focus of EPLI is to protect employers against claims made by employees alleging violations of their rights in the workplace.

Acts of discrimination, such as treating employees unfairly based on race, sex, age, or other protected characteristics, are quintessential examples of wrongful acts under EPLI. Similarly, wrongful termination pertains to dismissing an employee in violation of their rights or a contractual agreement, making these actions directly aligned with the types of claims EPLI is designed to cover.

In contrast, while acts of fraud and theft, criminal negligence, and contractual disputes may arise in the workplace, they do not typically fall under the scope of employment practices liability, as they pertain to different areas of legal liability and do not directly address employment practices. Therefore, the definition of a "wrongful act" specific to EPLI focuses primarily on issues like discrimination and wrongful termination, which are directly related to how employees are treated within an organization.