What type of coverage might protect a business from litigation due to employment practices?

Employment Practices Liability Insurance (EPLI) specifically addresses claims made by employees regarding employment practices. This type of coverage is designed to protect businesses from various types of employment-related lawsuits, which can include allegations of discrimination, wrongful termination, sexual harassment, and other employment-related issues.

The rationale behind EPLI is that employees may file lawsuits that could lead to substantial legal costs and damages, which can significantly impact a business's financial stability. By having this type of insurance, businesses can mitigate the risk of financial loss due to legal actions stemming from their employment practices.

The other types of insurance noted have different focuses. For example, Commercial General Liability is more concerned with general liability claims that may arise from bodily injury or property damage, rather than employment issues. Professional Liability Insurance is tailored for professionals against claims of negligence related to their professional services, and Directors and Officers Liability covers the decisions made by corporate directors and officers but does not specifically target employment practices. Thus, EPLI stands out as the most relevant form of coverage for protecting against litigation specifically related to employment practices.