What type of claims can EPLI policies typically cover under third-party liability?

The correct answer highlights the coverage of Employment Practices Liability Insurance (EPLI) policies with respect to third-party liability. EPLI typically provides coverage not only for claims filed by employees against their employers but also extends to certain claims made by third parties, such as customers or clients, who allege discrimination or harassment related to the actions of an employee.

Understanding that EPLI is designed to protect employers from lawsuits that arise in the context of employment practices underscores the relevance of claims made by employees. While such claims are essential to the policy, the third-party aspect comes in when those claims involve interactions with individuals outside the organization who might be affected by the employment practices. For example, a customer may sue a business for discriminatory practices that the employee exhibited while interacting with them, thus leading to a claim under the EPLI policy.

Other options refer to claims that do not fall under the typical provisions of EPLI. These may involve direct employee-to-employee claims, contractual liabilities, or general liability claims related to property damage, which are not the focus of an EPLI policy. By recognizing the nuances of EPLI coverage, one can grasp the unique role it plays in addressing employment-related issues that can affect third parties.