In general, any type of insurance covering the legal liability of one party
to another party. For example, commercial general, business auto, and errors
and omissions (E&O) liability policies all provide third-party liability coverage.
In the context of employment practices liability (EPL) insurance, a so-called
third-party liability coverage option is sometimes available to address claims
made by nonemployees (e.g., customers, vendors, clients) against the insured
company that arise from acts committed by employees. Most often, third-party
claims allege some form of either discrimination or harassment. The majority
of EPL policies do not explicitly cover third-party
claims, although most insurers will provide such coverage by endorsement.
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