Question

Ken, an editor for a major newspaper, is fired after arriving to work late. He files suit against his employer for wrongful termination. Which type of insurance would Ken's employer need to help cover the costs of the lawsuit?

A. Commercial liability insurance
B. Employment practices liability insurance
C. Workers compensation insurance
D. Fiduciary liability insurance

Answer 1

Ken's employer would need Employment Practices Liability Insurance (EPLI) to cover the costs of a lawsuit for wrongful termination, as it protects against employment-related issues.

Step-by-step explanation:

Ken's employer would need Employment Practices Liability Insurance (EPLI) to help cover the costs associated with the lawsuit over wrongful termination. This type of insurance is specifically designed to protect employers from lawsuits related to employment practices, including wrongful termination, discrimination, sexual harassment, and other employment-related issues.

While other types of insurance such as Commercial Liability Insurance cover general business liability risks, Workers Compensation Insurance is meant for job-related injuries and illnesses, and Fiduciary Liability Insurance guards against claims related to the mismanagement of employee benefit plans, none of these would be appropriate for Ken's situation.