What type of damage is typically excluded from employment practices liability coverage?

Employment practices liability coverage is designed to protect employers against claims made by employees regarding their employment rights. This includes issues such as discrimination, wrongful termination, and sexual harassment. The correct answer—property damage claims—aligns with the basic premise of employment practices liability; it does not cover physical damage to property.

Employment practices liability insurance focuses on claims that arise from the employer-employee relationship rather than from incidents involving property. For example, if an employee files a claim regarding their treatment at work or allegations of unfair practices, that falls under the purview of this type of insurance. However, claims concerning the physical damage to property, such as damage to buildings or equipment, are typically covered under different types of insurance policies, such as general liability or property insurance. Thus, property damage claims are excluded from employment practices liability coverage because they pertain to a completely different area of risk management.