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As an employer, you know that you can be sued by employees and former employees for many different reasons, and that employment lawsuits can be very expensive. The prevalence and cost of employment litigation has led some insurance companies to offer employment practices liability insurance. This type of insurance can protect employers from claims of harassment, discrimination, wrongful termination, and improper treatment, for example. Damages in these types of cases can be high, and insurance can protect you from the financial cost of these lawsuits. However, most employment practices liability insurance policies have significant restrictions and may not protect you for certain types of cases. For example, COBRA and ERISA claims are usually excluded. Therefore, it is important to carefully read the terms of the insurance policy and consider the potential costs before buying the policy. It only makes sense to purchase the policy if you think the cost of the policy will be less than potential employment lawsuits.