Sexual Harassment Liability Insurance is a type of insurance policy that provides coverage for claims of sexual harassment made against an employer by an employee or a third party. The policy typically covers legal defense costs, settlements, and judgments that arise from such claims.

This type of insurance can help protect businesses from financial losses that may result from sexual harassment lawsuits, which can be very costly and time-consuming to defend. Sexual harassment liability insurance is typically purchased as part of a broader employment practices liability insurance (EPLI) policy, which may also cover other types of claims related to employment practices, such as claims of discrimination or wrongful termination.

It’s important to note that sexual harassment liability insurance does not provide protection for intentional acts of sexual harassment. Employers who engage in sexual harassment may not be covered by this type of insurance policy and may face legal and financial consequences as a result. Therefore, it’s essential for employers to have a comprehensive sexual harassment policy in place and provide training to their employees to prevent such incidents from occurring.